accounting 0.0 / 5 ? AccountingALICE ASAQA Created by: megan spaceyCreated on: 11-11-16 10:58 Assets items owned by a business 1 of 30 Liabilities items owed by a business (debts) 2 of 30 income inflows of cash into a business 3 of 30 expenses outflows of cash from a business 4 of 30 trade receivables/ debtors/ customers customers who owe the business money for goods sold to them 5 of 30 Trade payables/ creditors/ suppliers when the business owes someone money for items purchased 6 of 30 purchases when business buys goods to sell (expense) 7 of 30 capital money the owner puts into a business to provide funds for it 8 of 30 inventory goods for resale purchased by the business 9 of 30 non current assets items not for resale and remain in the business for a long time. business would cease to operate effectively without them 10 of 30 current asset items remain in business for short amount of time and can be converted to cash 11 of 30 non current liability debt to be repaid in a year or more 12 of 30 current liability debt to be repaid within a year 13 of 30 trade discount given by supplier to businesses who buy in bulk 14 of 30 settlement/ cash discount given to customers who buy on credit to encourage them to pay before the due date 15 of 30 discount allowed given to customer 16 of 30 discount received received from suppliers 17 of 30 business transaction trade or deal made on a particular day 18 of 30 drawings money taken out of a business by the owner for his/hers own use 19 of 30 on credit payment for goods/service paid at a later day 20 of 30 examples of current assets inventory, money in bank, cash in till, trade receivable 21 of 30 examples of non current asset building, equipment, land, vehicles 22 of 30 examples of non current liability mortgage, bank loan 23 of 30 examples of current liability bank overdraft, trade payable 24 of 30 accounting equation assets - liabilities = capital, capital + liabilities = assets, assets- capital = liabilities 25 of 30 dual records minimises fraud 26 of 30 calculation of profit find differences between 2 capital figures and subtract any further capital introduced 27 of 30 pure profit occurs when no capital is introduced 28 of 30 calculation of profit after drawings find difference between 2 capital figures and add back any drawings 29 of 30 2 reasons capital might change over years business may have realised profit and owner may have introduced further capital 30 of 30
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