Please study the 14 vocabulary terms below. Then press the Mark Complete button to continue.
- asset
- a resource in the possession of a company which is available for use
- authorise
- to give permission to happen
- daybooks
- a journal of financial transactions entered on the day that they happened
- double entry bookkeeping
- a system of keeping financial records where each transaction has a debit and a credit posted
- ensure
- to make certain that something happens
- expenditure
- all monies spent
- income
- all monies received
- incorrect
- wrong, false
- liability
- a company's debt or obligation
- nominal code
- a reference number which allows the grouping of financial transactions
- post
- to make an entry in an accounting ledger or software system
- return
- a form which is submitted to a tax authority
- single entry bookkeeping
- a simple system of keeping financial records, where transactions are entered only once
- T-accounts
- an informal word for a set of financial records using double entry bookkeeping, with debits entered on the left and credits on the right
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The auditors checked the factory to make sure that all the assets listed in the accounts were there.
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All purchases over five thousand dollars must be authorised by accounts payable.
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I hate working with daybooks, it is so much easier to use a computerised accounting system.
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The majority of experienced bookkeepers use double entry bookkeeping as it allows them to check that both sides agree.
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All business owners should ensure that their tax returns are received by the Inland Revenue by 31st April.
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The director stopped the lunch programme for employees so he could reduce expenditure and save money.
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The company is looking for a way to increase its income, so they are talking about expanding into a new market.
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John wasn't paying attention so the answer he got was incorrect.
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The company shut down when the accounts showed that the liabilities were larger than the income and assets.
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It took me ages to remember all of the nominal codes, but now I do it is much quicker to enter invoices into the system.
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When you post a transaction in the system, the programme will automatically post the second side of it.
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When James had finished the clients' tax return he gave it to his supervisor to check before sending to the Inland Revenue.
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As Bob wasn't very good at maths he used single entry bookkeeping to keep track of his daily transactions.
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You should remember that each T-account should balance. If it doesn't, there must be a mistake somewhere.