Accounting flashcards

conta18
Flashcards by conta18, updated more than 1 year ago
conta18
Created by conta18 over 5 years ago
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Flashcards on Accounting flashcards, created by conta18 on 02/24/2016.

Resource summary

Question Answer
Opportunity cost a choice that has to be given up in favour of another choice
Budget a document that provides details of money that is coming in and going out, and also looks into the future and estimates future earning and spending
Payee the person to whom a cheque is made out
Drawee The bank named on a cheque
Drawer the person drawing funds named on a cheque
Not negotiable an order on a cheque stating that only the payee can put the money into his or her bank account
Overdraft service provided by a bank whereby a person can withdraw money from the bank in excess of the money held in his or her account
PAYG Pay As You Go
Income the moneys made by individuals for providing goods or services, or moneys received from the government in the form of welfare benefits
ATO Australian Taxation Office
Tax-free threshold Money earned without paying tax
Cheque Butt common business practice to make all payments by cheque. Provides all details required about cash payments made by the business and all necessary details to make an entry in the firm’s cash payments journal.
Cheque an order from the customer to the bank to pat the sum of money nominated on the cheque
Receipt is an amount of money coming into the business
GST the tax customers pay for the goods or services they pay that gets paid to the government by the business
ABN Australian Business Number. An official number, which a business needs for a number of purposes, including paying GST
Invoice There are two main types of invoices used in a small business: sales invoice and purchase invoice
Sales invoice is issued to a customer when a credit sale is made. This means the customer promises to pay for the goods or services at a later date
Purchase invoice is received by the business when a credit purchase is made from one of their suppliers. This means the business promises to pay for the items they purchase for their business at a later date.
Credit note this document is issued when goods have been returned due to being faulty or damaged, the wrong size, brand or colour.
Payment is an amount of money leaving the business
Journals are used to record the receipts and payments of a business. Allow the business owner to see where his or her money is coming from and going to.
Balance sheet an accounting report showing assets, liabilities and owner’s equity at a given time
Assets the possessions of people or businesses, such as cash and equipment
Debtor a person or business who owes a business money
Liabilities money owed by a business
Creditors people or businesses to whom a business owes money
Owner's equity the owner’s investment in the business
Profit the money coming into a business from the sale of goods and services less the costs incurred in providing the goods and services for sale
Profit and Loss statement an accounting report that shows revenue minus the expenses, and the profit or loss for a period of time
Revenue the money coming into a business from the sale of goods and services
Expenses the costs incurred in providing the goods and services for sale; that is, goods and services used up in earning revenue
EFTPOS electronic funds transfer at point of sale
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