Basic/General Accounting

Items

• current account

  Type of bank account, allows you to deposit and withdraw money with easy access and convenience (most common type of bank account).
• Chief Financial Officer

  Holds the top financial position in a company and the primary responsibility is to manage the financial actions of the company.
• closing inventory

  The amount of goods available at the end of an accounting period.
• materiality

  An accounting principle whereby information that may influence decisions that the primary users of financial statements make on the basis of those reports needs to be included and presented/disclosed in the financial statements.
• commission income

  An employee earns commission income in return for making a sale.
• consumer

  A person who purchases goods and/or services for personal use.
• consumable goods

  Products that are used up or consumed over time.
• contra accounts

  The account where the equal but opposite entry will be made.
• control accounts

  Summary accounts in the general ledger that ensures the accuracy of accounting records.
• cost of sales

  All accumulated cost involved in producing the goods or services that are actually sold (cost price of the goods that were sold).
• cost price

  The price it cost to buy an item.
• credit

  A contractual agreement between two parties in which a borrower receives something of value now and agrees to pay the lender at a later date.
• credit balance

  An amount of money that a customer owes a company or institution.
• credit bureau

  A company that collects information relating to individuals’ credit ratings
• credit card

  Offers a line of credit that can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future.
• accounts payable journal

  A journal that is used to record all the accounts payables (used to track debts to suppliers).
• credit side

  The right-hand side of an account.
• credit limit

  The maximum amount of money a lender will allow you to spend.
• purchases return

  When the buyer of goods for example, send the goods back to the seller.
• purchases return journal

  A journal that is used to record the goods which are returned to the suppliers.
• accounts payable schedule

  A report that lists all a company’s outstanding accounts payable balances.
• payables control account

  It is a general ledger account that summarises the total amount of money owed to payables.
• salaries payable

  Represent the amounts owed to employees for services rendered but not yet paid.
• accounts payable payment period

  A financial ratio that measures the average number of days a company takes to pay its suppliers.
• currency

  The term refers to the tangible form of money that is paper bills and coins that is used as a medium of exchange.