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The planning, recording, classifying and summarizing of information learnt from the data
Accounting
Someone with a personal interest in the business' success
Owner/Shareholder
Another name for Books of Original Entry
Daybooks/ Prime Entry
Makes all decisions
Sole Trader
All debtors and creditors whether individuals or other business'
Personal accounts
The aspect of accounting that deals with recording
Bookkeeping
Collect money to contribute to the economic growth of the country
Government
The 3rd stage in the cycle
Double entry/ Ledgers
Not required to publish financial records
Private Limited company
Checks the arithmetic accuracy of the ledger
Trial Balance
Another name for Capital
We are in the same industry
Competitors
Receipts, invoices, debit and credit notes
Source documents
Provides goods/services for their members and their families
Cooperatives
All assets are group together as...
Real accounts
Resources that a business gets more than 1 year to pay for
Long term liabilities
Business' that sells goods/services or lends money
Trade creditors/Creditors
Shows the closing financial position of the business
Balance Sheet/Statement of Financial Position
Sells shares/stock on the Stock Exchange
Public Limited Company
Shows the relationship between assets, liabilities and owner's equity
The Accounting/Balance Sheet Equation
Examples are stock, cash and cash at bank
Current assets
We buy the goods and services
Customers/Consumers
Calculates Gross/Loss and Net Profits/Loss
Trading, Profit and Loss A/C or Statement of Comprehensive Income
Morgan and Morgan Law Firm
Partnership
All Trading and Profit and Loss account items
Nominal accounts