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What does GST stand for
Goods & Services Tax
How do you calculate GST if the item is excludes GST?
If GST is included, how do you calculate GST
Divide by 11
Is fruit & vegetables GST exempt
Yes
Is chocolate milk GST exempt
No
If a computer was $1200 + GST, how much GST is payable?
$120
What type of account would a business loan be?
Liability / Liabilities
What type of account would capital be?
Owner's equity
What type of account would equipment be?
Asset
What type of account would wages be?
Expenses
List the account types that are Credit in nature
Liabilities, Owner's Equity & Revenue
List 3 examples of expenses
Could include: wages, electricity / utilities, rent expense, vehicle expenses (eg fuel), supplies, cleaning products, stationery
List 3 examples of assets
List the type of accounts that are Debit in nature
Assets & Expenses
List 2 examples of revenue
Could include: sales revenue, interest, rent revenue, fees revenue
Describe the definition for accounts receivable & the type of account (nature) it is
Refers to money that customers owe to the business & it is an asset
Describe what liabilities are & give an example
Amounts owed by the business to other people & examples could be a loan, mortgage & accounts payable
Describe what accounts payable is & what account type (nature) it is
Refers to money that the business owes to its suppliers for the items bought on credit & it is a liability
Describe the definition of owner's equity
The value of the owner's contribution to the business = capital
Describe the definition of expenses
Costs incurred by the business in order to earn revenue and keep the business operating
What is the Accounting Equation - 5 elements
Assets = Liabilities + (Owner's Equity + (Revenues - Expenses))
Give 2 examples of the Accounting Equation
1. Assets = Owner's Equity + Liabilities
2. Liabilities = Assets - Owner's Equity
3. Owner's Equity = Assets - Liabilities
Describe the Accounting Process (4 things)
Is the process of systematically:
Collecting, Recording, Interpreting, Reporting
Describe the definition of 'Account'
Individual records showing all increases and decreases in the financial value of each item in the business
Transaction Analysis - eg Paid back $10,000 cash to Olive's car yard. Describe the 1 line for account, type, nature, increase/decrease, Dr/Cr
1. Cash at bank, Asset Debit, Decrease, Cr, $10,000
2. Ac Payable, Liabilities, Credit, Decreasing, Dr, $10,000