Accounting Concepts

They are also known as long-term assets, are tangible or intangible assets held by a company for long-term use in the production or supply of goods and services, for rental to others, or for administrative purposes.

• Investment assets

• Current assets

• Fixed Assets

• Money assets

financial obligations that a company needs to settle within a short period, typically within one year.

• Long term assets

• Current assets

• Obligation liabilities

• Current liabilities

A Customer or client who has purchased goods or services on credit and has an outstanding obligation to pay the amount owed at a later date.

• Customer

• Creditor

• Debtor

• Liability

______ are those who loan money to friends or family or a business that provides immediate supplies or services to a company or individual but allows for a delay in payment

Profit a company makes after deducting the costs associated with producing and selling its products or the costs associated with its services.

• Net profit

• Gross profit

• Income profit

• Business profit

Price that a business pays for acquiring or producing a product or service. It represents the total cost incurred by a company to purchase raw materials, manufacture a product, or obtain goods for resale

• Selling Price

• Cost Price

• Mark-up Price

• Revenue price

Direct costs associated with producing or purchasing the goods that a company sells during a specific period.

• Cost price

• Input costs

• Cost of sales

• Sales cost

Amounts owed to a company by customers and other parties for goods sold or services rendered on credit.

• Trade and other payables

• Non-current liabilities

• Bad debts

• Trade and other receivables

Acts as a control account to ensure that the total of all individual creditor balances in the subsidiary ledger match.

• Debtors control

• Creditors Control

• Creditors Ledger

• Creditors reconciliation

Cost of borrowing money from a lender, typically expressed as an annual percentage rate (APR).

• Interest on overdraft

• Interest on loan

• Interest on current account

• Interest on investments