Basic Accounting Terms

Cash Receipts Information – – Inflow
– Increase GST Liability
– Original Given to Customers
– Copy kept by business
retained earning (definition and formula) – income that is not disbursed to shareholders and Formula:
beginning balance of retained earnings
+net income or Net loss( revenue-expenses)
=ending balance of retained earnings
revenue – money coming into the business
The abbreviation for "debit" is – Dr
aging of accounts receivable – classifies all receivables by their due date
Determining that the amount of cash agrees with accounting records – Proving Cash
Value – An item's equivalence in money
Sole Proprietorship – A type of ownership structure in which one person owns the business. Assumes all risk
Accounting records – Organized summaries of a business's financial activity.
Expense recognition – Prescribes that expenses be recorded in the same period as the revenues that were earned as a result
Which of the following types of bonds hold hydrogen and oxygen atoms together within an individual water molecule?
current liabilities – debts of a business that are generally paid within one year
Owner Withdrawals – see DRAWING ACCOUNTS
Periodic inventory system – An inventory system in which a company does not mainain detailed records of goods on hand throughout the period and determines the cost of goods sold only at the end of the accounting period
Which оf the fоllоwing types of bonds hold hydrogen аnd oxygen аtoms together within аn individual water molecule?
goodwill – purchase price of business – fair market value of its net assets

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