Everything that a company owns. This might include cars, money, buildings and machines.
Ownership
Equipment
Assets
Liabilities
Money which a company owes to another company or person
Assets
Budget
Expenditures
Liabilities
Financial Statement which lists all the assets and all the liabilities of a company on one particular day, which is very often 31st December. It’s like a photograph because it’s at one moment in time.
Overdraft
Balance Sheet
Statement
Income statement
A Financial Statement which shows all the company’s sales and all of its costs, for a period of time.
Double entry
Balance Sheet
Current Assets
Income Statement
The accounting system used all over the world which records every transaction twice, as a Debit and a Credit.
Double Entry
Bank Overdraft
Fixtures and fittings
These are often shown in a shorter form as Dr. and Cr. They are the two sides used in Double Entry.
Freehold Premises
Debit and Credit
Plant and equipment
Things which a company owns that have a long-term value. Examples are buildings, motor vehicles, and machines.
Current Liabilities
Prepayments
Fixed Assets
Freehold premises
_____ is where a company has a negative amount of money in its bank account. Usually, this is agreed with the bank in advance and there is a limit to the amount. This overdraft is a Current Liability.
Bank statement
Bank Overdraft
Bank Loan
Bank turnover
____________are the extra costs of running a business. Examples; insurance, power costs, bank interest payable, administration wages
Overdraft
Ledger
Overheads
Prepayments
