Flashcards
Accounting Terms
Cards in this deck (20)
- 1CapitalGenerally refers to the amount invested in an enterprise by its owners e.g., aid up share capital in a corporate enterprise. It is also used to refer to the interest of owners in the assets of an enterprise.
- 2AssetsTangible objects or intangible rights owned by an enterprise and carrying probable future benefits.
- 3LiabilityThe financial obligation of an enterprise other than owners’ funds.
- 4RevenueRevenue is the amount earned from selling goods or services, as well as interest, royalties, and dividends.
- 5Cost of Goods SoldThe cost of goods sold during an accounting period. In manufacturing operations, it includes (i) cost of materials; (ii) labor and factory overheads; selling and administrative expenses are normally excluded.
- 6ProfitA general term for the excess of revenue over related cost. When the result of this computation is negative, it is referred to as loss.
- 7ExpenditureIncurring a liability, disbursement of cash or transfer of property for the purpose of obtaining assets, goods or services.
- 8ExpensesThe cost relating to the operation of an accounting period or the revenue earned during the period or the benefit of which do not extend that period.
- 9Deferred ExpenditureExpenditure for which payment has been made or a liability incurred but which is carried forward on the presumption that it will benefit over a subsequent period or periods. This is also referred to as deferred revenue expenditure.
- 10Sales TurnoverThe aggregate amount for which sales are affected or services rendered by an enterprise. The terms gross turnover and net turnover (or gross sales and net sales) are sometimes used to distinguish the sales aggregate before and after deduction of returns and trade discounts
- 11InventoryTangible property held for sale in the ordinary course of business, or in the process of the production for such sale, or the consumption in the production of goods or services for sale, including maintenance supplies and consumables other than machinery spares.
- 12Accumulated DepreciationThe total to date of the periodic depreciation charges on depreciable assets.
- 13Profit and Loss StatementA financial statement which presents the revenue and expenses of an enterprise for an accounting period and shows the excess of revenue over expenses (or vice versa). It is also known as profit and loss account.
- 14Appropriation AccountAn account sometimes included as a separate section of the profit and loss statement showing application of profits towards dividends, reserves, etc.
- 15Balance SheetA statement of the financial position of an enterprise as at a given date, which exhibits its assets, liabilities, capital, reserves and other account balances at their respective book value.
- 16Book ValueThe amount at which an item appears in the books of account or financial statement. It does not refer to any particular basis on which the amount is determined e.g., cost, replacement value, etc.
- 17GoodwillAn intangible asset arising from business connection or trade name or reputation of an enterprise.
- 18Sundry CreditorAmount owed by an enterprise on account of goods purchased or services received or in respect of contractual obligations. Also, it is termed as trade creditor or account payable.
- 19Sundry DebtorPersons from who amounts are due for goods sold or services rendered or in respect of contractual obligations. Also, termed as debtor, trade debtor, and account receivable.
- 20Contingent AssetAn asset the existence, ownership or value of which may be known or determined only on the occurrence or non-occurrence of one or more uncertain future events.
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- Flashcards on Accounting Terms, created by DURAIPANDIAN R on 10/05/2024.
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- DURAIPANDIAN R
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