Terminology Flashcards
cash sales
paid for immediately
credit sales
payment is made at a later date
purchases
only items the business intends to sell as part of it’s trade
cash purchases
paid for at the time of the purchase
creditors
credit supplier
trade payables
credit supplier
cash book
money going in and out of the business
petty cash
small stuff such as tea, stamps
assets
premises, fixtures, fittings, vehicles
inventory
stock to sell to customers
bank
money in the bank - as long as it’s not over drawn
cash
money held on the premises
trade receivables
money owed to you by credit customers
liabilites
something a business owes in the course of trade
payables
to credit suppliers
income
money received through selling goods + services
expenditure
opposite of income, money paid for goods + services. 1. cost of sales. 2. expenses
profit
if income exceeds expenditure
drawings
money taken out by owner
loss
expenditure exceeds income
sales day book
where sales are recorded on a daily basis
receivables
amounts owed to a business, regarded as assets.
credit purchases
when a business pays for a goods or services some time after making the purchase
