Glossary of Terms
As you work through the course content, you may need to find the meaning of a specialised term or a term you have not encountered before. This glossary can be accessed from any course using the glossary panel on the left hand side of the screen.
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The systematic recording, reporting, and analysis of financial transactions of a business.
Accounting Cycle is referred to as accounting process or the Bookkeeping Cycle. It is the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements
Assets = Liabilities + Owner's Equity. Because of double-entry accounting this equation should be in balance at all times.
Accounts Payable is money owed by a business to its suppliers shown as a liability on a company's balance sheet. Accounts payable is also known as Creditors.
Money which is owed to the business by a customer who bought the goods and services on credit. This is a current asset on the company’s balance sheet. Accounts receivable is also known as Debtors
It is a liability, and is usually current. These expenses are typically periodic and documented on a company's balance sheet due to the high probability that they will be collected.
Firms will typically incur periodic expenses such as wages, interest and taxes. They are indicated on the firm's balance sheet from when the firm can reasonably expect their payment, until the time they are paid.
Economic ressource- can be own or controlled to produce a value.
Assets are fundamentally the resources that are owned or controlled by a business. These resources are used to create income opportunities for the business now and into the future. Assets are represented on the financial report called the 'Statement of Financial Position' or the 'Balance Sheet' and are usually divided into two sections, current and non-current. Examples of assets include cash, inventory, motor vehicles, computer equipment, machinery, etc.
Balance Day Adjustments
Balance day adjustments are adjustments that need to be made on some accounts at the end of the accounting period or financial year. This is done so that they accurately reflect the position of the business
A Balance Sheet is a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time.
A Balance Sheet is also referred to as the Statement of Financial Position