Accounting and Financial Concepts

Front

What is book-keeping?

Back

The collection, recording, storage and retrieval of financial transactions of a business.

Front

What is accounting?

Back

The process of collecting, recording, classifying, summarising, analysing, interpreting and communicating financial data.

Front

What are financial statements made up of?

Back

An income statement and a statement of financial position.

Front

What does financial data refer to?

Back

Any aspect of a business that can be measured in terms of money.

Front

Who are interested parties in a business?

Back

People or groups with a special interest in a business, such as prospective investors, the government, trade payables, and managers.

Front

What does an income statement calculate?

Back

The profit made by a business.

Front

What do trade payables represent?

Back

Businesses or individuals to whom money is due for services or goods supplied to the business.

Front

What is owner’s equity?

Back

What the business owes the owner, including funds raised by the owner to fund a business idea.

Front

What are assets?

Back

Resources of monetary value that a business owns or are owed to the business.

Front

What are liabilities?

Back

Amounts that the business owes people for resources supplied to the business.