Small businesses
A period of growth or expansion for a business.
What are peaks?
To make a profit.
What is the main aim of most businesses?
Bank loans, overdraft and creditors.
What are liabilities?
Loan for an investment property vs credit card debt.
What is good debt vs bad debt?
A period of decline or the low point of a business cycle.
What are troughs?
Electricity, advertising, stationary, wages.
What are expenses?
Cash, stock, equipment, machinery, debtors.
What are assets?
The collection, recording and reporting of financial information.
What is accounting?
The Profit and Loss Statement, the Cash Flow Statement and the Balance Sheet.
What are the three important accounting reports or statements?
The money coming into a business from the sale of goods and services (revenue) minus costs (expenses)
What is profit?
Owner's investment in a business plus reinvested profits, minus drawings.
What is owner's equity?
Wrongful or criminal deception intended to result in financial gain.
What is fraud?
A summary of what a business owns and what a business owes at a point in time.
What is a balance sheet?
Gross profit minus expenses.
What is net profit?
Assets = Liabilities + Owner's Equity
What is the Accounting Equation?
People who are highly skilled in analysing and preparing financial information for a court of law.
What are forensic accountants?