Workbook 1 Flashcards
Accountant
a professional who are responsible for the preparations and analysis of financial statements
accruals
the concept that states that revenues and expenditures should be matched to the time period in which they were earnt or incurred
accrued expenses
an amount owed for an expense that has been used in this financial year, but not yet paid for
additional incomes
revenues that come from places other than selling of the core products or resources
arithmetical error
an error which causes debits and credit to not equal in the trial balance
asset
a resource owned by a business
bank reconciliation statement
a statement that explains the difference between the balance of the bank account recorded in the cash book and the balance shown on the bank statement
bank statement
the source document that evidences all bank transactions
bookkeeper
the person who records the financial transactions within the books of prime entry and the ledgers
books of prime entry
the books in which information from source documents are summarised and organised. they are the first place in which transactions are organised.
capital
the resources that have been invested into the business by the owner(s)
carriage inwards
the delivery costs of the goods purchased by a business
carriage outwards
the delivery costs of the goods sent to the customers
cash
money that is available for spending
cash receipts
the source document which eveidences a cash purchase
cheque counterfoils
the source document which evidences a cheque issued.
