Grade 7: Accounting concepts

The money a business owes other people

• Debit

• Liability

• Expenses

• Transaction

defines your financial goals, and it manages your money.

• Capital

• Saving

• Budgeting

• Accounting

it can be money or items such as vehicles, equipment or a building.

• capital

• owners equity

• financial records

• expenses

why do we save

• to keep your money save

• to identify and develop personal goals

• to develop a timeline for the month

• to start a business

It is the money spent by the business to run the business

used to understand the financial position and financial performance of the business.

Match the following

• R5600 (Income) - R6000 (Expenses) = R400

• Loss

• summary of all financial information

• Retail businesss

• Selling stock or trading goods

• Accounting

• increases the wealth of the business

• Transaction

• Examples are: receipt, a cheque,

  invoice

• Assets

Organize these options into the right categories

Groups:

(a) Fixed assets

,

(b) Current assets

,

(c) Long term liabilities

,

(d) Current liabilities

• vehicles

• financial assets

• paid within a year

• petty cash

• short term loans

• either cash or can be converted into cash within a year

• land and building

• equipment

• used for longer than a year

• debtors control

• mortgage bond

• trading stock

• paid over more than 12 months

• bank

• bank overdraft

Reorder the following

"5 of the seven keys to effective budgeting"

• Develop a timeline for the month

• Review and revise

• Identify and develop personal goals

• Assign priorities

• Evaluate and record current trends in both income and expenses

Give two examples of how you can deposit money into a bank account or to take money out of a bank account