ACCOUNTING USERS
This user needs accounting information to determine the amount of taxes and other duties are paid
Who is the government ?
It is based on what the business owns, who the business owes and what was invested.
What is the Accounting Equation?
This financial statement shows the position of the business ‘as at’ a particular date.
What is the Balance Sheet?
It is the systematic recording of financial information
What is book-keeping?
They are concerned that they will be paid on time
Who are suppliers?
When liabilities and capital are added
What are Assets?
The assets are divided into two categories.
What are Non-Current and Current Assets?
They owe the business money.
Who are Debtors (Trade Receivables)?
They are concerned about the business’ financial situation.
Who are the stakeholders?
Its layout is found in the Balance Sheet.
What is the Accounting Equation
When the most liquid asset is listed first, the Balance Sheet is said to be prepared in this order.
What is the order of liquidity?
This transaction involves the use of money.
What is a cash transaction?
Their concern is to monitor the daily progress of the business.
Who are the managers?
The values of assets and capital are known. This will assist in calculating the value of
What are liabilities?
The repetition of the stages for each financial period is seen in its sequence.
What is the Accounting Cycle?
In this transaction payment is delayed.
What is a credit transaction?
They are the most important users as they have the most to lose should the business fails
Who are the owners and creditors (payables)?
The Assets are valued $50,000 and the Liabilities are valued $10,000, the value of the Capital is
What is $40,000?
Its international name
What is the Statement of Financial Position?
The owner removing resources from the business is called
What are Drawings?