HR Unit1 revision: Bookkeeping

GAAP stands for

• Generally Acccute Accounting Principles

• Generally Accepted Algebra Purposes

• Generally Accepted Accounting Principles

IFRS stands for

IFRS is used to

• guide professional conduct in South Africa

• as one of many options for professional conduct

• assist only supermarkets and other food industries

• get out of paying taxes

Proper records need to be kept for the following reasons:

• to assist with planning and budgets

• for assistance for money to be hidden

• for accountability and transparency

• to assist to avoid mismanagement and fraud

The accounting system must show three areas to assist in preparing a statement of accounts of what was spent, collected and what funds are left.

List the 5 steps in a financial transaction

A debtor is

• a business or individual that owes money to another business

• a business or individual that extends credit to another business or individual with a payment plan

• a statement that is prepared at the end of the year

• a report showing financial activity for a certain period

A creditor is

• an individual or business that owes money to another business

• an individual or business that extends credit to another individual or business on a payment plan

• a report that provides the financial information for a year

• a statement that shows financial activity for a certain period of time

To keep accurate books you should have

• a bank account

• a loan account

• a record of all payments made

• a shoe box with all the receipts

VAT stands for