Accounting flashcards

62 VCE Accounting cards across 2 modules (20 definitions, 40 key facts, 2 fill-the-gap, 0 formulas). Each session gives you 20 cards, due cards first. Swipe right for easy, left for hard, down for again. Keyboard: Space to flip, 1 to 4 to rate.

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What this deck covers

Unit 3: Financial accounting for a trading business (41 cards, 13 dot points)
Unit 4: Recording, reporting, budgeting and decision-making (21 cards, 7 dot points)

Sample cards from this deck

Definition
The accounting equation and elements (VCE Accounting Unit 3)
Define The five accounting elements
An asset is a present economic resource controlled by the entity as a result of past events. A liability is a present obligation to transfer an economic resource as a result of past events.
Definition
Bad debts and the allowance for doubtful debts (VCE Accounting Unit 4)
Define Bad debt and doubtful debt
A bad debt is an account receivable now known to be uncollectable, which is written off. A doubtful debt is an estimate at balance day of accounts receivable that may not be collected in future; it is recognised through an Allowance for Doubtful Debts, a contra asset that reduces the reported value of receivables.
Definition
Balance day adjustments under accrual accounting (VCE Accounting Unit 3)
Define Accrual accounting
Accrual accounting recognises revenue when it is earned and expenses when they are incurred, regardless of when cash is received or paid.
Definition
Budgeted accounting reports (VCE Accounting Unit 4)
Define Budgeting
Budgeting is the process of preparing financial reports for a future period based on expected transactions. A budget sets out planned revenues, expenses, cash flows and balances so that performance can be planned and later compared against actual results.
Definition
The distinction between cash and profit (VCE Accounting Unit 3)
Define Investing activities
Investing activities are cash flows from buying and selling non-current assets, such as paying for new equipment or receiving the proceeds of a vehicle sold.
Definition
Disposal of non-current assets (VCE Accounting Unit 4)
Define Carrying amount
The carrying amount is the cost of a non-current asset less its accumulated depreciation to the date of disposal.
Definition
Depreciation of non-current assets (VCE Accounting Unit 3)
Define Depreciation
Depreciation is the allocation of the cost of a non-current asset over its useful life.
Definition
Ethical considerations in accounting decision-making (VCE Accounting Unit 4)
Define Ethical considerations
Ethical considerations are the moral judgments about what is right and fair in a decision, going beyond what is merely legal or profitable.
Definition
Double entry recording for a trading business (VCE Accounting Unit 3)
Define Cash drawings of inventory by the owner
Debit Drawings, Credit Inventory at cost. No GST and no profit is recorded because the owner is not a customer.
Definition
Non-financial information and strategies to improve performance (VCE Accounting Unit 4)
Define Non-financial information
Non-financial information is information that is not expressed in monetary terms but is relevant to evaluating performance, such as the number of customer complaints, levels of customer and staff satisfaction, market share, environmental impact and the number of repeat customers.