Flashcards
Accounting term 1
Cards in this deck (160)
- 1What are the 4 types of financial accounts?Income
Expenses
Assets
Liabilities - 2What are the 4 types of financial accounts?Income
Expenses
Assets
Liabilities - 3What are the 4 types of financial accounts?Income
Expenses
Assets
Liabilities - 4What is income?Increases in economoc benefits during an accounting period.
- 5What is income?Increases in economoc benefits during an accounting period.
- 6What is income?Increases in economoc benefits during an accounting period.
- 7What is expenses?Decrease in economic benefirs during an accounting period.
- 8What is expenses?Decrease in economic benefirs during an accounting period.
- 9What is expenses?Decrease in economic benefirs during an accounting period.
- 10What are assets?Something that a business owns or is owed.
a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. - 11What are assets?Something that a business owns or is owed.
a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. - 12What are assets?Something that a business owns or is owed.
a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. - 13What are liabilities?What a business owes.
A present obligation arising from a past event, the settlement of which is expected to lead to a outflow of future ecobomic benefits from the entity. - 14What are liabilities?What a business owes.
A present obligation arising from a past event, the settlement of which is expected to lead to a outflow of future ecobomic benefits from the entity. - 15What are liabilities?What a business owes.
A present obligation arising from a past event, the settlement of which is expected to lead to a outflow of future ecobomic benefits from the entity. - 16What is the equation for profit/loss?income - expenses
- 17What is the equation for profit/loss?income - expenses
- 18What is the equation for profit/loss?income - expenses
- 19What is the equation for capital?Assets - liabilities = capital
- 20What is the equation for capital?Assets - liabilities = capital
- 21What is the equation for capital?Assets - liabilities = capital
- 22What is the dual aspect consept?The principle of recognising all aspects of a transaction by putting the transaction in multiple accounts.
- 23What is the dual aspect consept?The principle of recognising all aspects of a transaction by putting the transaction in multiple accounts.
- 24What is the dual aspect consept?The principle of recognising all aspects of a transaction by putting the transaction in multiple accounts.
- 25What is a sole trader?A person who is the exclusive owner of a business.
- 26What is a sole trader?A person who is the exclusive owner of a business.
- 27What is a sole trader?A person who is the exclusive owner of a business.
- 28What is a limited company?A private company whose owners are legally responsible for its debts only to the extent of the amount of capital they invest.
- 29What is a limited company?A private company whose owners are legally responsible for its debts only to the extent of the amount of capital they invest.
- 30What is a limited company?A private company whose owners are legally responsible for its debts only to the extent of the amount of capital they invest.
- 31what is the equation for the statement of financial position?(non-current assets +current assets)-(non-current liabilities + current assets) = (opening capital + profit or loss -drawings)
- 32what does cost of sales represent?The cost to the business of the goods thay are bing sold in the financial period.
- 33what does cost of sales represent?The cost to the business of the goods thay are bing sold in the financial period.
- 34what does cost of sales represent?The cost to the business of the goods thay are bing sold in the financial period.
- 35what is the equation for cost of sales?opening inventory
plus
purchases
minus
closing inventory - 36what is the equation for cost of sales?opening inventory
plus
purchases
minus
closing inventory - 37what is the equation for cost of sales?opening inventory
plus
purchases
minus
closing inventory - 38what is the equation for gross profit?sales revenue
minus
cost of sales - 39what is the equation for gross profit?sales revenue
minus
cost of sales - 40what is the equation for gross profit?sales revenue
minus
cost of sales - 41whats the equation for profit for the year?gross profit
minus
expenses - 42whats the equation for profit for the year?gross profit
minus
expenses - 43whats the equation for profit for the year?gross profit
minus
expenses - 44why do buainesses send financial documents to buyers?to make sure that the buyer is receiving the correct goods or services in the correct condition and within an agreed time.
- 45why do buainesses send financial documents to buyers?to make sure that the buyer is receiving the correct goods or services in the correct condition and within an agreed time.
- 46why do buainesses send financial documents to buyers?to make sure that the buyer is receiving the correct goods or services in the correct condition and within an agreed time.
- 47why do buyers isaue financial documents?to ensure the correct goods or services have been ordered and only pay fpr what they recieve.
- 48why do buyers isaue financial documents?to ensure the correct goods or services have been ordered and only pay fpr what they recieve.
- 49why do buyers isaue financial documents?to ensure the correct goods or services have been ordered and only pay fpr what they recieve.
- 50what does BACS stand for?bankers automated clearing system.
- 51what does BACS stand for?bankers automated clearing system.
- 52what does BACS stand for?bankers automated clearing system.
- 53what is BACS?a method of making payments direct to a creditors bank without using a cheque. they run direct debits ans direct credits.
- 54what is BACS?a method of making payments direct to a creditors bank without using a cheque. they run direct debits ans direct credits.
- 55what is BACS?a method of making payments direct to a creditors bank without using a cheque. they run direct debits ans direct credits.
- 56what info is needed on a VAT invoice?VAT number
total VAT
price per item
business name and address
customer name and address
description of goods / service
rate of any discount - 57what info is needed on a VAT invoice?VAT number
total VAT
price per item
business name and address
customer name and address
description of goods / service
rate of any discount - 58what info is needed on a VAT invoice?VAT number
total VAT
price per item
business name and address
customer name and address
description of goods / service
rate of any discount - 59what is a quotation?sent from supplyer to customer
contains proposed price and time frame for completion or delivery
needs to be authorised - 60what is a quotation?sent from supplyer to customer
contains proposed price and time frame for completion or delivery
needs to be authorised - 61what is a quotation?sent from supplyer to customer
contains proposed price and time frame for completion or delivery
needs to be authorised - 62what is a purchase order?sent from customer to supplyer
is a request for goods or servics
does need authorisation - 63what is a purchase order?sent from customer to supplyer
is a request for goods or servics
does need authorisation - 64what is a purchase order?sent from customer to supplyer
is a request for goods or servics
does need authorisation - 65what is a delivery note?sent from suplyer to customer with goods
contains description of goods and quantity
doesnt need authorisation - 66what is a delivery note?sent from suplyer to customer with goods
contains description of goods and quantity
doesnt need authorisation - 67what is a delivery note?sent from suplyer to customer with goods
contains description of goods and quantity
doesnt need authorisation - 68what is a goods recieved note?sent from customer to supplyer
confirm all goods have been recieved in good condition
doesnt need authorisation - 69what is a goods recieved note?sent from customer to supplyer
confirm all goods have been recieved in good condition
doesnt need authorisation - 70what is a goods recieved note?sent from customer to supplyer
confirm all goods have been recieved in good condition
doesnt need authorisation - 71contribution per unitsales price - variable costs
- 72contribution per unitsales price - variable costs
- 73contribution per unitsales price - variable costs
- 74total contributioncontribution x units sold
- 75total contributioncontribution x units sold
- 76total contributioncontribution x units sold
- 77contributions total proffittotal contributions - fixed costs
- 78contributions total proffittotal contributions - fixed costs
- 79contributions total proffittotal contributions - fixed costs
- 80cost volume proffit analysiscontribution > fixed coat = proffit
cobtribution < fixed cost = loss
contribution = fixed cost = break even - 81cost volume proffit analysiscontribution > fixed coat = proffit
cobtribution < fixed cost = loss
contribution = fixed cost = break even - 82cost volume proffit analysiscontribution > fixed coat = proffit
cobtribution < fixed cost = loss
contribution = fixed cost = break even - 83CVP break-even analysisthe output at which income covers cost.
fixed cost / contribution per unit - 84CVP break-even analysisthe output at which income covers cost.
fixed cost / contribution per unit - 85CVP break-even analysisthe output at which income covers cost.
fixed cost / contribution per unit - 86CVP target profitthe output to achieve a certain level of proffit
fixed cost
fixed cost + target proffit /
contribution per unit - 87CVP target profitthe output to achieve a certain level of proffit
fixed cost
fixed cost + target proffit /
contribution per unit - 88CVP target profitthe output to achieve a certain level of proffit
fixed cost
fixed cost + target proffit /
contribution per unit - 89CVP margin of safetythe amount at which sales exceeds the break-even point
- 90CVP margin of safetythe amount at which sales exceeds the break-even point
- 91CVP margin of safetythe amount at which sales exceeds the break-even point
- 92Three main overlapping areas of accounting activityfinancial managemnent
management accounting
financial reoprting - 93Three main overlapping areas of accounting activityfinancial managemnent
management accounting
financial reoprting - 94Three main overlapping areas of accounting activityfinancial managemnent
management accounting
financial reoprting - 953 manin functions of managementplanning
control
decision making - 963 manin functions of managementplanning
control
decision making - 973 manin functions of managementplanning
control
decision making - 98what info does an opperatoional manager require from the management accountantinfo to make decisions regarding the control and improvement of operations
- 99what info does an opperatoional manager require from the management accountantinfo to make decisions regarding the control and improvement of operations
- 100what info does an opperatoional manager require from the management accountantinfo to make decisions regarding the control and improvement of operations
- 101what info does the middle manager require from the management accountantinfo to supervise, plan and make decisions on financial and physical resources, products, services and customers
- 102what info does the middle manager require from the management accountantinfo to supervise, plan and make decisions on financial and physical resources, products, services and customers
- 103what info does the middle manager require from the management accountantinfo to supervise, plan and make decisions on financial and physical resources, products, services and customers
- 104what information does the senior manager requier from the mnagement accountantinfo to support strategic decisions that have long-term consequences
- 105what information does the senior manager requier from the mnagement accountantinfo to support strategic decisions that have long-term consequences
- 106what information does the senior manager requier from the mnagement accountantinfo to support strategic decisions that have long-term consequences
- 107what are cost unitsunits of output to which cost can be charged
- 108what are cost unitsunits of output to which cost can be charged
- 109what are cost unitsunits of output to which cost can be charged
- 110what are cost centressections of a business to which cost can be charged
- 111what are cost centressections of a business to which cost can be charged
- 112what are cost centressections of a business to which cost can be charged
- 1133 types of cost classificationeliment and nature
function
behaviour - 1143 types of cost classificationeliment and nature
function
behaviour - 1153 types of cost classificationeliment and nature
function
behaviour - 116what is considered when finding the cost by elimentmaterial
labour
expenses - 117what is considered when finding the cost by elimentmaterial
labour
expenses - 118what is considered when finding the cost by elimentmaterial
labour
expenses - 119what is considered when finding cost by naturecan it be identified directly or indirectly with each unit of output
- 120what is considered when finding cost by naturecan it be identified directly or indirectly with each unit of output
- 121what is considered when finding cost by naturecan it be identified directly or indirectly with each unit of output
- 122what are the main heading when cost is classified by functionproduction
administration
production and distribution
finance - 123what are the main heading when cost is classified by functionproduction
administration
production and distribution
finance - 124what are the main heading when cost is classified by functionproduction
administration
production and distribution
finance - 125what are the 3 types of cost behaviourvariable
fixed
semi-variable (mixed) - 126what are the 3 types of cost behaviourvariable
fixed
semi-variable (mixed) - 127what are the 3 types of cost behaviourvariable
fixed
semi-variable (mixed) - 128what are variable coststotal variable costs increase with an increase of production, however variable cost per unit stays constant
- 129what are variable coststotal variable costs increase with an increase of production, however variable cost per unit stays constant
- 130what are variable coststotal variable costs increase with an increase of production, however variable cost per unit stays constant
- 131what are fixed coststotal fixed cost stays constant with an increase of production but fixed cost per unit decreases when production increases
- 132what are fixed coststotal fixed cost stays constant with an increase of production but fixed cost per unit decreases when production increases
- 133what are fixed coststotal fixed cost stays constant with an increase of production but fixed cost per unit decreases when production increases
- 134what are semi variable costscosts that have both fixed ans variable aspects
phone bill - 135what are semi variable costscosts that have both fixed ans variable aspects
phone bill - 136what are semi variable costscosts that have both fixed ans variable aspects
phone bill - 137semi variable cost formula(semi variable cost per unit x no of units) + fixed cost
- 138semi variable cost formula(semi variable cost per unit x no of units) + fixed cost
- 139semi variable cost formula(semi variable cost per unit x no of units) + fixed cost
- 140what is working capitalamount of money inveated in inventory and trade - credit allowed from trade payables
current assets - current liabilities - 141what is working capitalamount of money inveated in inventory and trade - credit allowed from trade payables
current assets - current liabilities - 142what is working capitalamount of money inveated in inventory and trade - credit allowed from trade payables
current assets - current liabilities - 143cash cyclecash ➡️ trade payables ➡️ inventory ➡️ trade recievebles ➡️
- 144cash cyclecash ➡️ trade payables ➡️ inventory ➡️ trade recievebles ➡️
- 145cash cyclecash ➡️ trade payables ➡️ inventory ➡️ trade recievebles ➡️
- 146whats does the working capital ratio look atcash movement
how quickly inventory is sold.
how quickly trade recieveables are turned into cash
how quickly trade payables arw payed - 147whats does the working capital ratio look atcash movement
how quickly inventory is sold.
how quickly trade recieveables are turned into cash
how quickly trade payables arw payed - 148whats does the working capital ratio look atcash movement
how quickly inventory is sold.
how quickly trade recieveables are turned into cash
how quickly trade payables arw payed - 149cash cycle calculationcash cycle = average inventory days + average receivable days - average payable days
- 150cash cycle calculationcash cycle = average inventory days + average receivable days - average payable days
- 151cash cycle calculationcash cycle = average inventory days + average receivable days - average payable days
- 152inventoey days calculationinventory days = (inventory / cost of sale) x 365
- 153inventoey days calculationinventory days = (inventory / cost of sale) x 365
- 154inventoey days calculationinventory days = (inventory / cost of sale) x 365
- 155recieveable days calculation(trade reciebeables / credit sales ) x 365
- 156recieveable days calculation(trade reciebeables / credit sales ) x 365
- 157recieveable days calculation(trade reciebeables / credit sales ) x 365
- 158payable days calculation(trade payables / credit purchases) x 365
- 159payable days calculation(trade payables / credit purchases) x 365
- 160payable days calculation(trade payables / credit purchases) x 365
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- Flashcards on Accounting term 1, created by francesca graham on 28/10/2019.
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- francesca graham
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