Definitions 1
A document requesting payment for goods or services.
Invoice
This is any money that a business receives.
Income
How much is GST as a percentage in Australia?
10%
What is a source document?
Original records of financial transactions - Created at the time a transaction occurs.
What does BAS stand for?
Business Activity Statement
A buyers written request for goods from a supplier
Order Form/Purchase Order
These are costs that a business can claim as tax deductions for operating costs. e.g. Rent and utility bills
Expenses
What is GST applied to?
Goods and Services
A document that records a transaction confirming that money has been paid.
Receipt
What is a BAS form?
A form that a business lodges with the ATO telling them what taxes they are due to pay.
Legally binding sum of money owed by one part to another
Debt
Money that you borrow from others. Debt is an example of this.
Liability
Who does a business pay GST to?
Australian Taxation Office (ATO)/Government
Name 3 examples of Source Documents businesses use to keep track of their financial records.
Invoice
Receipt
Order Form
How can a BAS form be lodged?
A record of daily sales, including how customers paid.
Sales Log
What is the name of this equation?
Assets = Liabilities + Debt
The Accounting Equation
What is the name of the form that a business fills in to tell the ATO how much GST they need to pay?
Business Activity Statement (BAS)
What is something illegal that happens when businesses don't keep accurate financial records?
Money Laundering
Why taxes are included on an BAS form?
GST
PAYG Witholding Tax
A check that compares business records with the bank statement to find the differences.
Bank Reconciliation
The money that customers owe a business for goods and services they have already received but not paid for yet.
Accounts Receivable
What are the 3 reasons that a business needs to register for GST?
1. Their revenue is $75,000 or more.
2. A non-profit/charity has revenue of $150,000 or more.
3. You have a taxi or ride-share business.
If you have your car serviced, what source documents might you receive for this transaction?
Tax Invoice
Receipt
How often does a business complete a BAS form?