Accounting flashcards

What this deck covers

• Accounting for Decision-Making (15 cards, 4 dot points)

  • Accounting Principles and Ethics - TCE Accounting (Tasmania) (3)
  • Budgeting and Cash Flow - TCE Accounting (Tasmania) (4)
  • Ratio Analysis and Interpretation - TCE Accounting (Tasmania) (4)
  • The Cash Flow Statement - TCE Accounting (Tasmania) (4)
• Financial Accounting (39 cards, 11 dot points)

  • Accrual Accounting and Balance Day Adjustments - TCE Accounting (Tasmania) (3)
  • Bad and Doubtful Debts - TCE Accounting (Tasmania) (3)
  • Depreciation of Non-Current Assets - TCE Accounting (Tasmania) (5)
  • Financial Statements for a Business - TCE Accounting (Tasmania) (4)
  • GST and the Sole Trader - TCE Accounting (Tasmania) (5)
  • Internal Control and Bank Reconciliation - TCE Accounting (Tasmania) (4)
  • Perpetual Inventory Recording - TCE Accounting (Tasmania) (3)
  • Recording Transactions: Journals and Ledgers - TCE Accounting (Tasmania) (3)
  • Special Journals and Subsidiary Ledgers - TCE Accounting (Tasmania) (3)
  • The Accounting Equation and Double Entry - TCE Accounting (Tasmania) (3)
  • Users of Accounting Information - TCE Accounting (Tasmania) (3)

Sample cards from this deck

1. Definition

   Accounting Principles and Ethics - TCE Accounting (Tasmania)

   Define Faithful representation

   Information that is complete, neutral (free from bias) and free from error, so it represents what really happened rather than what the preparer would prefer users to see.

2. Definition

   Accrual Accounting and Balance Day Adjustments - TCE Accounting (Tasmania)

   Define Balance day adjustment

   An entry made at the end of the reporting period to bring revenue and expense accounts into line with the accrual basis, so the income statement and balance sheet reflect what was earned and incurred rather than what was paid.

3. Definition

   Budgeting and Cash Flow - TCE Accounting (Tasmania)

   Define Cash budget

   A forward-looking statement that estimates the cash a business expects to receive and pay over future periods, so it can predict its bank balance and plan for surpluses or shortfalls.

4. Definition

   Bad and Doubtful Debts - TCE Accounting (Tasmania)

   Define Allowance for doubtful debts

   A contra-asset account holding the estimated amount of current debtors not expected to pay.

5. Definition

   The Cash Flow Statement - TCE Accounting (Tasmania)

   Define Operating cash flow

   The net cash a business generates from its core trading activities in a period. Healthy, positive operating cash flow means the business can sustain itself without relying on borrowing or selling assets.

6. Definition

   Depreciation of Non-Current Assets - TCE Accounting (Tasmania)

   Define Accumulated depreciation

   A contra-asset account that builds up the total depreciation charged on an asset since purchase.

7. Key fact

   Ratio Analysis and Interpretation - TCE Accounting (Tasmania)

   Tell me about Liquidity ratios

   A current ratio around $2:1$ is often regarded as comfortable, though the right level depends on the industry. The quick (or acid-test) ratio is stricter because it removes inventory, which can be slow to convert to cash.

8. Definition

   GST and the Sole Trader - TCE Accounting (Tasmania)

   Define GST clearing account

   A liability account that records GST collected on sales (credits) and GST paid on purchases (debits). Its balance shows the net amount owing to, or refundable from, the ATO at the end of the period.

9. Definition

   Internal Control and Bank Reconciliation - TCE Accounting (Tasmania)

   Define Dishonoured cheque

   A cheque the business banked and recorded as a receipt, but which the customer's bank later refused to pay (for example, insufficient funds). The bank reverses it on the statement, so the business must reduce its cash records and reinstate the debtor.

10. Definition

    Perpetual Inventory Recording - TCE Accounting (Tasmania)

    Define Inventory loss

    The shortfall when the physical stocktake counts fewer goods than the perpetual Inventory account shows.