Accounting1 Chapter 2 (The Balance Sheet)

Corporation

Owned by shareholders

Economic Entity

Concept that business is distinct from its owners

Time period assumption

ongoing life of the business is divided into time periods

Source Documents

A business paper that shows the details of the transaction

Bank Debit Advice

shows the amount of money that will be withdrawn from the bank account

Bank Credit advice

Shows the amount that will be deposited into the bank account

The balance Sheet

A Formal document that shows the financial position of a person business or other organization.

Accounts receivable

list of customers who purchased goods but will pay at a later date

Accounts Payable

list of suppliers who the company purchased from but will pay at a later date

IFRS

International Financial Reporting Standards

ASPE

Accounting Standards for Private Enterprises