Accounting Stuff

HideShow resource information
Name The 7 Source Documents
Invoices, Credit Notes, Cheque Counterfoils, Paying-in Slip Counterfoils, Cash Receipts, Till Rolls, Bank statements.
1 of 24
What Are Bank Charges? SD
Where a bank makes a charge for providing bank services. Could be calculated by number of transactions happened on bank account.
2 of 24
What Is A Standing Order? SD
Where you set up fixed payments from your bank account for regular payments from instruction from the customer.
3 of 24
What Are Direct Debits? SD
Used for fixed or variable amounts, money taken out automatically by the company you owe.
4 of 24
What Are BACS? SD ?
It is the central payment system it is used for direct debit payments
5 of 24
What is A Credit Transfer? SD
Where money is received through banking system BACS and credited to sellers account.
6 of 24
Name The 6 Different Types Of Subsidiary Books? Only Credit
Sales Day Book, Puchases Day Book, Sales Returns Day Book, Purchase Returns Day Book, Cash Book and General Ledger.
7 of 24
Why is It Important To Keep Accounting Records? name Variety Of Reasons
- To record what happened in past to produce a income statement and balance sheet , - To allow fraud to be found by comparing to external information e.g. bank statement. - To monitor amounts business owes and amounts owed to the business.
8 of 24
Why Would Employees Be Interested In Finance Of A Company?
- If business is able to continue trading and provide employment and able to pay wages..- To assess if the performance will mean they will be able to offer future bonuses.
9 of 24
Why Would Suppliers Be Interested In A Finance Of A Company?
- To determine if the business can pay for the goods supplied within agreed terms. - The gauge likely hood of future repeating orders.
10 of 24
Name 3 Stake Holders?
Suppliers, Owner,Employees.
11 of 24
What Are The Limitations Of The Trail Balance?
Doesn't Show COPROC - Commission, Omission, Error Of Principle, Reversal Of Entries, Original Entry and Compensating Error.
12 of 24
What Is The Importance Of The Trail Balance?
Used to check arithmetic accuracy. Also Transposition Error, Addition Error, Posting Error, Partial Omission Error, Unequal Posting Error.
13 of 24
What Is The Double Entry For Goods Sold On Credit?
- Sales Ledger, debit trade receivables account - General Ledger , credit sales account.
14 of 24
What Is The Double Entry For Goods Brought On Credit?
- Purchases Ledger, credit trade payables - General Ledger, debit purchases
15 of 24
What Is The Double Entry For Goods Returned By Customer?
- Sales Ledger, credit trade receivables account. - General Ledger, debit sales returns.
16 of 24
What Is The Double Entry For Goods returned To The Supplier?
- Purchases Ledger, - debit trade payable. - General Ledger, credit purchase returns.
17 of 24
What Are Unpresented Cheques?
It is the time delay between writing a cheque and recording in cash book and the cheque being entered on bank statement.
18 of 24
What Are Outstanding Lodgements?
The amount paid in the bank but not yet recorded on bank statement.
19 of 24
Importance Of Bank Reconciliation Statements? Part 1
- Main cash book compared to bank statement will determine if any errors so they can be corrected. - Independent can detect fraud verification of cash book balance. - With cash book up to date amended bank balance for trail balance.
20 of 24
Importance Of Bank Reconciliation Statements? Part 2
- Shows unrepresented cheques over 6 months old, out of date.
21 of 24
How Are Control Accounts Useful?
- Instant Information since you don't need to add up can print out, Prevention Of Fraud since it is checked by a supervisor regularly, - Location Of Errors, Preparation Of Final Accounts to help with final accounts if no double entry or trail balance
22 of 24
Limitations Of Control Accounts?
Can't deal with; Omission, Error Of Commission, Original Entry, Compensating Error.
23 of 24
What is The Formula For Depreciation On Income And Balance Sheet?
Income Statement = Cost of asset - scrap value/ number of years - Balance Sheet = Cost - (Depreciation value + provision for depreciation)
24 of 24

Other cards in this set

Card 2

Front

What Are Bank Charges? SD

Back

Where a bank makes a charge for providing bank services. Could be calculated by number of transactions happened on bank account.

Card 3

Front

What Is A Standing Order? SD

Back

Preview of the front of card 3

Card 4

Front

What Are Direct Debits? SD

Back

Preview of the front of card 4

Card 5

Front

What Are BACS? SD ?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Accounting resources:

See all Accounting resources »See all Unit 1 cards resources »