What Is My Name Flashcards
Marufu
Acc cycle?
- Transaction
- Source documents
- Subsidiary journals
- General Ledger
- Trial balance
- Financial statements
What is a source document
It is a specifically designed form which supplies details of business transaction
What does the source documents contain
It contains information like the date the nature and types of transactions the values of the transaction and their names of the buyers and sellers involved
Source documents are important?
- As evidence of transaction
- for recording purposes
- for auditing purposes
What is a receipt
The receipt is something that you get by purchasing something
5 things to include on a receipt
- The date the transaction took place
- The source documents number
- The amount that was paid
- Who was involved in the transaction
- What the transaction was for
Three parties involved in a cheque
A drawer and a drawee and a payee
What information appears on a cheque counterfoil
- The same date the check was written out
- the name of the recipient
- amount of cheque
- chequebnumber printed at the bottom
What is a bank statement
A bank statement is issued by a bank to the customer at the end of the month
Bank statements include the following
- Name and address of that company
- account number
- Dates of that statements
- The opening balance
- All deposits made into the bank account
- all payments made from the bank account
- debit and stop orders
- bank charges
- closing balance
What is a cash invoice
Akash invoice is used when a business sells a few items everyday
What does EFT mean
Electronic funds transfer
What does ATM mean
Automated teller machine
What is a sole trader
A sole trader is a person who owns their business and is self-employed
Two types of sole traders
Services business and trading business
- a trading business is a business that buys and sells goods
- services business renders a service to the community example doctors hairdressers and plumbers
What is capital
Capital is the amount of money the owner contribute to start a business
Two types of capital
Fixed capital and operating capital
Owner’s equity
Owner’s equity equals assets minus liabilities
What is income
Income is the money that a business receives from selling goods
What is loss
Loss is when the expenses of a business exceeds its income
Expenses
Expenses are payments that decreases the owners wealth in the business
What is profit
When income is more than the expenses
What is transaction
A transaction is a term of a business deal
Accounting equation
Assets equals owner’s equity plus liabilities
