Basic/General Accounting

Items

• financial data

  Is information related to the financial health of a business and includes income, expenses, assets, liabilities and cash flow.
• financial management

  Is the process of planning, organising, directing and controlling financial resources to achieve specific goals.
• financial period

  Period of time over which a company or organisation measures its financial performance.
• financial position

  Serves as a snapshot, providing a comprehensive picture of an entity’s financial situation
• financial report

  Document that provides information about the financial performance of a company or organisation.
• financial statement

  These statements are prepared in accordance with accounting standards. These standards ensure that financial statements are prepared in a consistent and transparent manner, which makes them easier for users to understand and compare.
• financial year

  Fiscal year is a 12-month accounting periods that a business uses for financial and tax reporting purposes.
• First in first out (FIFO)

  Accounting method in which assets purchased first are disposed of first.
• firm

  Business organisation that provides professional services. (Examples of firms are a sole proprietorship, partnership, limited liability company or corporation).
• non-current assets

  Assets that are not expected to be converted into cash within one year (Long-term assets).
• assets register

  A register that allows you to keep track of your assets and provides fair estimate of their worth.
• fixed cost

  Business expense that remains the same regardless of the level of production or output (Examples: Rent, salaries, insurance etc.).
• fixed deposit

  Type of savings account that offers a higher interest rate than a regular savings account in exchange for a fixed deposit period (agree to deposit a certain amount of money for a specific period of time).
• fixed price

  Price that is agreed upon in advance and does not change.
• folio number

  Unique code which can be used to trace a transaction in accounting journals.
• foreign sector

  The part of a country’s economy that is concerned with external trade.
• form of remuneration

  Any type of compensation or payment that an individual or employee receives for their services or the work that they do for an organization or company.
• donation

  Something that is given to charity, like a sum of money.
• funds

  A sum of money saved or made available for a specific purpose.
• general journal

  Book of general entry in which accountants record general financial transactions of a business in chronological order.
• general ledger

  Summary of all financial transactions that have been posted from the general journal.
• going concern concept

  Fundamental accounting principlethat assumes that a business will continue to operate in the foreseeable future.
• gross

  Gross is the total amount, without deductions.
• gross domestic product

  GDP is the standard measure of the value added created through the production of goods and services in a country during a certain period.
• gross income

  The total amount of income a business has earned before subtracting any expenses.