extra theory/ stuff that needs more revision Flashcards
one benefit of buys inventory on credit
allows the buyer to sell goods to customers before they have to pay their supplier
what is depreciation?
Reduction in value of goods due to wear and tear and age
what are bad debts
money that is owed to the business by a customer which the business is no longer going to receive which could be due to bankruptcy.
carriage in
delivery costs involved in getting goods into the business from the supplier
what is a fixed cost
costs which remain the same regardless of units produced or sold e.g rent
what is a variable cost
costs which change with the number of units being produced e.g materials
what is a cost centre?
a department or area of a business where costs can be gathered from or charged to
TRIAL BALANCE
trade receivables?
trade payables?
bank overdraft?
provision for bad debts?
mortgage/loan?
inventory?
trade receivables - Dr
trade payables - Cr
bank overdraft - Cr
provision for bad debts - Cr
mortgage/loan - Cr
Inventory - Dr
