Accounting A
The process of planning, recording, analyzing and interpreting financial information
Accounting
Basic Accounting equation
Assets = Liabilities + Owner's Equity
Recording of business Transactions
A sale for which payment will be made at a later date
Credit Sales
Anything of value that is owned
Asset
An amount owed
Liability
Accounting is the language of
Business
How many branches of accounting are
Three.
Financial , Cost and ManagerialIf damaged or below standard goods returned to the seller are called
Purchase Return / Return Outward
A business owned by one person
Sole Proprietorship
The difference between assets and liabilities
Equity
The amount of cash or goods invested by the owner in a business is called
Capital // Owner's Equity
A person from whom credit purchases are made is called
Creditor
According to this concept, it is assumed that business will exist for an indefinite time period
Business and Owners have a separate identity
Business Entity Concept
According to this concept expenses are matched with revenues to study the business result
Matching Concept
Anticipate no profit, but provide for all possible losses , represents which Convention?
conservatism
The discount is called _________ when Payment is made within the discount period
Cash Discount
The accounting period length is usually _______
1 year
A person who Owes money to the business is called
Debtor
Items bought for the purpose of resale are called
Goods
The person to whom the business owes some money is called
Creditor
Which type of business has unlimited liability?
Sole proprietorship / partnership
The formula for net income/ net profit
Net profit = Revenue - Expenses
The assets with physical existence are called
Tangible Assets