Basic/General Accounting

Items

• authorised share

  Is the maximum number of shares that the company is allowed to issue.
• authorised share capital

  Is the total amount of money that a company is allowed to raise by issuing shares.
• audit

  An audit is an examination of a company's financial statements by an independent auditor. The auditor assesses the company's financial statements to ensure that they are fairly presented and in accordance with applicable accounting standards.
• audit fees

  Remuneration received by accounting firms and auditors for the delivering of professional services.
• auditor general

  The Auditor-General of South Africa (AGSA) is the supreme audit institution (SAI) of South Africa. It is the only institution that, by law, has to audit and report on how the government is spending the South African taxpayers’ money.
• bad debt

  Refers to outstanding balances from receivables or loans owed that are not recoverable and are written off.
• bad debt recovered

  Payment received for bad debt that was previously written off.
• balance

  The difference between the sum of debit entries and the sum of credit entries entered into an account during a financial period (the relevant total).
• balance brought forward

  The balance of an account at the beginning of a period.
• balance carried forward

  The balance of an account at the end of a period.
• statement of financial position

  Is a financial statement that provides a snapshot of a company's financial health at a specific point in time. It shows the company's assets, liabilities, and equity.
• balance statement

  Same as above. Used to refer to it as Balance sheet, but now we refer to it as Statement of Financial Position (like above).
• bank

  A bank is a financial institution that provides a variety of services to individuals and businesses.
• bank account

  A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded.
• bank charge

  Is a fee that a bank charges its customers for various services and transactions (handling fees).
• bank overdraft

  It enables you to borrow money through your current account by taking out more money than you have in the account.
• bank reconciliation

  Bank reconciliation is the process of comparing a company's bank account records to the bank statements. It is an important internal control that helps to identify and correct errors, omissions, and fraud.
• bankrupt

  Someone or something that is unable to pay their debts.
• bankruptcy

  A legal process that allows a person or business to discharge some or all of their debts.
• bid

  To offer a particular amount of money for something that is for sale and compete against other people to buy it, normally a public sale of goods or property (auction).
• bill

  A statement of the amount of money that is owed for goods or services that have been provided.
• bookkeeper

  A person responsible for bookkeeping, the process of recording an entity’s financial transactions into organised accounts on a daily basis.
• carrying amount

  The amount of something, as reflected in the financial statements of a business.
• bond

  A bond is a loan that an investor makes to a borrower, and the borrower promises to repay the loan with interest over a set period of time, called the term.
• breakeven point

  The breakeven point is the point at which a company's total revenue equals its total costs. It is the point at which the company is neither making a profit nor loss.