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Business Banagher
Bookkeeping Keywords
Question | Answer |
---|---|
transaction | An agreement between two people to carry out a business activity |
ledger | It records all the business' transactions. |
Accounts | A ledger is divided into accounts. |
debit side | We use the Debit side to record that the account is receiving. |
credit side | We use the Credit side to record that the account is giving. |
Assets | They are things of value that the business owns. |
Fixed Assets | These stay in the business for longer than one year, eg land, premises, machinery or motor vehicles |
Current Assets | These are asset which usually change in their value during the year, stock, bank or debtors. |
Liabilities | These are things that the business owes. |
Current Liabilities | These are bills owed by the firm that must be paid within one year and usually a lot sooner eg ESB and creditors |
Long Term Liabilities | Money owed by the firm that must be paid back over a long period of time eg 20 year loan |
Expenses | Bills the business must pay to cover the day to day costs of runing the busiess eg wages |
Gains | Any income received by the firm other than that from normal sales eg rent received |
Trial Balance | Is is a list of balances brought down from the accounts,the debit column should equal the credit column. |