Recording credit sales Flashcards
What are financial statements?
-The statement of profit or loss and statement of financial position are two key elements of the financial statements.
What group of users are likely to read financial statements?
-Investors
-Managers of the business
-Customers
-Suppliers
-Lenders
-Tax authorities
-Governments and their agencies
-The public
What is an asset?
-Something that a business owns.
What is capital?
-The amount of money invested by the owner in the business.
What is income?
-What the business earns when it makes sales of goods or services to other parties.
What are expenses?
-What the business spends to purchase goods or services for the company.
What is the international term for profit and loss account?
-Statement of profit or loss.
What is the international term for fixed assets?
-Non-current assets.
What is the international term for balance sheet?
-Statement of financial position.
What is the international term for stocks?
-Inventories.
What is the international term for trade debtors or debtors?
-Trade receivables.
What is the international term for trade creditors or creditors?
-Trade payables.
