Transaction analysis Flashcards
1
Q
What is Net profit?
A
Revenue - Expense
2
Q
What is Equity?
A
Share Capital + Net Profit - Dividends
3
Q
What is a “general ledger?”
A
The ledger is a collection of all accounts for an information system.
4
Q
What is a “T-account”?
A
A T-account represents a ledger account and is a tool used to understand the effects of one or more transactions.
5
Q
What is the criteria for each transaction?
A
- At least two accounts are involved, with at least one debit and one credit.
- Total amount debited must equal the total amount credited
- Account equation must not be violated
