Accounting Unit 1

A customer who owes a debt to the business for goods or services sold to them on credit

• Accounts Receivable
• Accounts Payable
• Inventory of Materials
• Bank

A supplier who the business owes a debt to for the purchase of materials or supplies on credit

• Accounts Receivable
• Accounts Payable
• Inventory of Materials
• Bank

When a service is performed or goods are exchanged but the cash relating to the transaction is not exchanged until a later date

• Credit Purchases
• Cash Purchases
• Credit Fees
• Cash Fees

An Accounting record that summarizes all transactions involving the purchase of materials or supplies on credit

• Sales Journal
• Purchases Journal
• Cash Receipts Journal
• Cash Payments Journal

An Accounting record that summarizes all transactions involving the sale/performing of services on credit during a reporting period

• Sales Journal
• Purchases Journal
• Cash Receipts Journal
• Cash Payments Journal

The ability of a business to earn profit by comparing profit against a base like sales, assets or owner's equity

• Profit
• Profitability
• Liquidity

A profitability indicator that assesses expense control by calculating the percentage of Sales Revenue that is retained as net profit

• Net Profit
• Net Profit Margin
• Cash Flow Cover

Decrease Prices; Market Effectively, Improve the service

• Strategy to Increase Revenue
• Strategy to Decrease Expenses

Change Suppliers; Purchase Inventory of materials in Bulk

• Strategy to Increase Revenue
• Strategy to Decrease Expenses

An Accounting report that details the revenue earned and expenses incurred during the reporting period

• Balance Sheet
• Income Statement
• Cash Flow Statement