Loading

Module 1: Accounting terminology

Notes
Study Reminders
Support
Text Version

Accounting Terminology, D – L

Set your study reminders

We will email you at these times to remind you to study.
  • Monday

    -

    7am

    +

    Tuesday

    -

    7am

    +

    Wednesday

    -

    7am

    +

    Thursday

    -

    7am

    +

    Friday

    -

    7am

    +

    Saturday

    -

    7am

    +

    Sunday

    -

    7am

    +

XSIQ
*

Accounting - Introduction - Accounting terminology, D - L

Accounting terminology, D - L

* the view that a perpetual inventory system of recording for stock is a
better system than a physical inventory system for recording stock.

* accounting terms.

* that 'equalling' totals at the foot of the trial balance does not
ensure that accuracy has been achieved in ledger recording;

* that profit is an estimated measure.

* the accounting process in terms of its recording, reporting,
interpreting and budgeting functions;

* what is involved in recording subsidiary ledger stock records using
identified cost, and in using assumed FIFO cost flows.

* columnar special journals to record transactions of a like nature;

* suitable headings for reports which specifically state the name of the
firm, the type of report, and the exact length and/or exact date of the
report.

* alternative methods of revenue recognition and expense recognition;

* each accounting principle in terms of the effect on each of the
recording and reporting procedures.

* between the asset approach to recording a payment in advance and the
expense approach to prepaid expenses;

* between a current asset, and a non-current asset and a current
liability and a non-current liability.

* with explanations, the reasons for a business adopting a perpetual
system of recording for stock.

* the consequences for both the Profit and Loss statement, and the
balance sheet of alternative values for stock;

* why the historical cost balance sheet does not show the current worth
of the firm.

* alternative methods of determining the cost of stock;

* alternative procedures in the recording and reporting of inventory.

* the effect of alternative methods of depreciation on the balance sheet
value of a particular non-current asset;

* a firm's rate of return on investment over a number of equal-length
accounting periods.

* ledger accounts in drawing up a chart of accounts;

* transactions according to their effect on the accounting equation.

* the accounting principles involved in accounting for non-current assets
and depreciation;

* the significance of a stocktake held at the end of the accounting
period.

* how the entity principle effects the recording of transactions;

* how a firm may experience an increase in cash but have operated at a
loss.

* information provided on the profitability and liquidity of a firm.

* accounting data in assessing the performance (including profitability
and liquidity) of a business from an internal management point of view.

* the treatment of depreciation as an allocation of cost;

* the application of the 'lower of cost and net realisable value' to
individual items and groups of items but not to aggregate stock valuations.

* sources of finance available to a sole trader for normal trading and
for expansion;

* advantages resulting from the use of a subsidiary ledger.

Previous | Next