Get premium membership and access questions with answers, video lessons as well as revision papers.
Accounting methods: Companies choose between two methods—cash accounting or accrual accounting. Under cash basis accounting, preferred by small businesses, all revenues and expenditures at the time when payments are actually received or sent are recorded. Under accrual basis accounting, income is recorded when earned and expenses are recorded when incurred.
Account receivable: The sum of money owed by your customers after goods or services have been delivered and/or used.
Account payable: The amount of money you owe creditors, suppliers, etc., in return for goods and/or services they have delivered. For example, cash, inventory, and accounts receivable (see above). Fixed assets (non-current) may provide benefits to a company for more than one year—for example, land and machinery.
Capital: A financial asset and its value, such as cash and goods. Working capital is current assets minus current liabilities.
Cash flow statement: The cash flow statement of a business shows the balance between the amount of cash earned and the cash expenditure incurred.
Credit and debit: A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is entered on the right in an accounting entry. A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is entered on the left in an accounting entry.
Double-entry bookkeeping: Under double-entry bookkeeping, every transaction is recorded in at least two accounts—as a credit in one account and as a debit in another. For example, an automobile repair shop that collects Rs. 10,000 in cash from a customer enters this amount in the revenue credit side and also in the cash debit side. If the customer had been given credit, “account receivable
kevinnyabute answered the question on March 5, 2018 at 07:08
- Describe the difference between accounting and book keeping(Solved)
Introduction to financial accounting, Bachelor of commerce and business management
Date posted: March 5, 2018. Answers (1)
- Describe sevenaccounting policies or concepts(Solved)
Describe seven accounting policies or concepts.
Date posted: March 5, 2018. Answers (1)
- Define accounting and explain six users of accounting information(Solved)
Define accounting and explain six users of accounting information.
Date posted: March 2, 2018. Answers (1)
- What happens when a company goes into administration?(Solved)
What happens when a company goes into administration?
Date posted: February 26, 2018. Answers (1)
- What is the difference between going into liquidation and administration?(Solved)
What is the difference between going into liquidation and administration?
Date posted: February 26, 2018. Answers (1)
- State three qualities of useful financial information(Solved)
State three qualities of useful financial information.
Date posted: February 21, 2018. Answers (1)
- Define the following concepts in accounting(a) Money measurement concept(b) Separate valuation concept(c) Separate entity concept(Solved)
Define the following concepts in accounting (a) Money measurement concept (b) Separate valuation concept (c) Separate entity concept
Date posted: February 21, 2018. Answers (1)
- State the accounting equation(Solved)
State the accounting equation
Date posted: February 21, 2018. Answers (1)
- Explain the following concepts as they are used in accounting: historical, cost, prudence, matching(Solved)
Explain the following concepts as they are used in accounting:
historical cost
prudence
matching
Date posted: February 20, 2018. Answers (1)
- Discuss Shortcomings facing management of special funds in terms of accountability and stewardship in Kenya(Solved)
Discuss Shortcomings facing management of special funds in terms of accountability and stewardship in Kenya.
Date posted: February 13, 2018. Answers (1)
- What are the uses of Journal in accounts?(Solved)
What are the uses of Journal in accounts?
Date posted: February 4, 2018. Answers (1)
- Outline the circumstances under which a person may cease to be a member of a cooperative society(Solved)
Outline the circumstances under which a person may cease to be a member of a cooperative society
Date posted: January 15, 2018. Answers (1)
- Explain five benefits that would accrue to a company from the reporting of the company's social responsibility activities(Solved)
Explain five benefits that would accrue to a company from the reporting of the company's social responsibility activities.
Date posted: January 8, 2018. Answers (1)
- Distinguish between internal financing and external financing when applied to corporations(Solved)
Distinguish between internal financing and external financing when applied to corporations.
Date posted: December 27, 2017. Answers (1)
- Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment. (a) Payback period (b) Internal rate of return(Solved)
Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment.
a) Payback period
b) Internal rate of return
c) Profitability index
Date posted: December 27, 2017. Answers (1)
- Explain the main basic factors that requires to be taken into account in selecting the best method of financing a plant expansion(Solved)
Explain the main basic factors that requires to be taken into account in selecting the best method of financing a plant expansion.
Date posted: December 27, 2017. Answers (1)
- In reference to the stock exchange explain the meaning of (a) Bear market (b) Bid price (c) Dividend yield (d) Going public (Solved)
In reference to the stock exchange, explain the meaning of
a. Bear market
b. Bid price
c. Divided yield
d. Going public
Date posted: December 27, 2017. Answers (1)
- Explain any four roles of stock exchange in an economy(Solved)
Explain any four roles of stock exchange in an economy.
Date posted: December 27, 2017. Answers (1)
- What are the differences between Insurance and Hedging?(Solved)
What are the differences between Insurance and Hedging?
Date posted: December 17, 2017. Answers (1)
- List two ways in which a business firm ensures that customer payments are converted into spendable form.(Solved)
List two ways in which a business firm ensures that customer payments are converted into spendable form.
Date posted: December 4, 2017. Answers (1)