Basic/General Accounting

Items

• net salary

  The salary that the employee receives after all the deductions.
• net worth

  A difference between the person’s/entity’s total assets and total liabilities.
• non-current assets

  Assets that a company holds for more than 12 months which are not meant for immediate consumption or resale.
• non-current liabilities

  Liabilities/obligations that the entity is expected to settle for a period of more than 12 months.
• nominal account

  It is the type of account that is temporary in nature and brought back to zero at the end of the financial year.
• nominal cost

  It is the cost of something without adjusting the cost for the effects of inflation.
• ordinary shares

  It is the indicator of ownership of the company.
• ordinary share capital

  It is the amount of ordinary shares issued by the company to the shareholders.
• organisation

  It is a structured group of people working together to achieve intended goals.
• opening inventory

  Inventory that was not sold/consumed at the end of the previous financial year.
• operating activities

  Cash inflows and outflows brought about by the buying and selling of goods or services, that is to say, by the company’s main operations.
• operating profit

  The profit that the company makes from its main business operations after deducting its operating expenditure.
• Output VAT

  It is a type of tax that the VAT vendor charges to its customers and then pays it over to SARS.
• outstanding amount

  Amount that still needs to be paid.
• overdue account

  An amount that was not settled within the agreed-upon due date.
• outstanding deposit

  It is the deposit that was made but has not yet reflected on the recipient’s account.
• overdraft

  An agreement between the account holder and the financial institution to allow the account holder to withdraw more money than the account holder has in the account.
• overheads

  Costs not directly related to the production of specific goods or services but are necessary for the functioning of the factory.
• overstated

  A situation where the figures are recorded as higher than they actually are.
• owing

  It is an obligation to pay a debt.
• own business

  A business that is owned by a natural person/individual.
• owner’s equity

  It is the value of the business that belongs to the owners after all the liabilities have been settled.
• ownership

  It is the legal and financial rights in a business or asset.
• packaging materials

  It is the items used for storage, protection of valuables and also for putting in the items to be sold.
• partnership

  It is a form of a business where two or more people operate a business as co-owners.