Accounting Concepts and Transactions

Front

Ledger account likely to carry a debit balance

Back

The Owners Drawing’s account

Front

Foundation of the double-entry system of bookkeeping

Back

Dual Aspect Concept

Front

Transaction type: Purchase of goods for resale

Back

Revenue Expenditure

Front

Transaction type: Purchase of equipment for use in the business

Back

Capital Expenditure

Front

The owner of a business withdrew €1,500 from the business bank account for personal expenses.

Back

Process the transaction through the bank account and the drawings account.

Front

A business bank account was overdrawn, and interest was charged.

Back

Bank Statement

Front

VAT registration is voluntary unless the business's taxable turnover exceeds a certain threshold set by HMRC.

Back

VAT registration is voluntary unless the business's taxable turnover exceeds a certain threshold set by HMRC.

Front

The purpose of a petty cash account.

Back

To process petty cash transactions and check the balance periodically.

Front

The method used to check the balance of a petty cash account.

Back

Prepare a trial balance; if totals agree, the petty cash account balance is correct.

Front

The term "cash sale" describes a transaction where the buyer pays immediately for goods or services.

Back

False. A "cash sale" does not involve a period of time for payment.