Accounting Terms
what does the acronym 'ALICE' stand for?
A assets
L liability
I income
C capital
E expense
What does the term bad dept mean?
An amount owed by a receivable that will not be saved.
Property or items of value owned by a business.
Assets
What does the term fixed asset mean?
Assets that are purchased for long term use.
State a reason that gives a rise to bad debt.
- Death of the debtor
- The debtor is bankrupt
- The debtor cannot be traced
The business or person selling the item on credit, can be any person/business you owe money to
Creditor
what is the accounting cycle
Source Document -> Journal -> Ledgers -> Trial balance -> Financial Statements -> Adjustments
Is bad debt an expense or a liability.
Expense
List the titles of the balance sheet and the income statement, along with the order in which they are presented.
The name if the business, the type of financial statement, time frame / for the year ending
The term used to explain how quickly a company can convert assets into cash.
Liquidity
What does the term accrued revenue mean?
Income that is owed to you.
Income earned from the sale of goods or services is called
Revenue
These represent the types of business organizations that use accounting.
1)sole proprietorships,
2)partnerships
3)corporations?
What are the types of end-of-year adjustments? other than bad debt and accrued revenue.
1. Prepaid expenses
2.provision for doubtful debts
3. Accrued expenses
4. Revenue receding advanced
This system is used to analyze and record a transaction
Double-entry