Basic Accounting Course Notes- Terminology Flashcards
Balance Sheet
Statement of financial position
Profit and loss account
Statement of profit or loss and other comprehensive income
Profit and loss reserve (in statement of financial position)
Retained earnings
Turnover
Revenue
Debtor account
Account retrievable
Debtors (eg ‘debtors have increased’)
Receivables
Debtor
Customer
Creditor account
Account payable
Creditors (eg ‘creditors have increased’)
Payables
Creditor
Supplier
Stock
Inventory
Fixed asset
Non-current asset (generally). Tangible fixed assets are also referred to as ‘property, plant and equipment’
Long-term liability
Non-current liability
Provision (eg for depreciation)
Allowance (you will sometimes see ‘provision’ used too.)
General ledger
Nominal ledger
VAT
Sales tax
Debentures
Loan notes
Preference shares/dividends
Preference shares/dividends
Amortisation is calculated and accounted for in the same way as ____
Depreciation
Goodwill arising in acquisition
The excess of the purchase consideration for a business over the fair value of the individual assets and liabilities acquired
Writing off
The debit balance being classified as an expense and transferring payments on the statement of profit or loss
Trade discount vs early settlement discount
Percentage deducted from the list price of goods
Reduction in the amount payable in return for payment within an agreed period
A business charges VAT on its sales (_____ tax) and suffers VAT on its purchases (____ tax)
Output, input
