CSEC Principles of Accounts Syllabus

Flashcards covering essential vocabulary from the CSEC Principles of Accounts Syllabus.

Accounting

The financial information system that provides relevant information to managers or users of economic resources.

Sole-Trader

A business owned and operated by a single individual.

Balance Sheet

A financial statement that shows the assets, liabilities, and equity of a business at a specific point in time.

Financial Statements

Documents prepared to summarize the financial activities of a business, including the income statement and balance sheet.

Accrual Concept

An accounting principle where revenue and expenses are recorded when they are earned or incurred, not when cash is exchanged.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check that total debits equal total credits.

Control System

Procedures and policies implemented to ensure the integrity of financial and accounting information.

Depreciation

The systematic reduction of the recorded cost of a fixed asset, reflecting its wear and tear.

Cash Book

A business's financial record that tracks cash inflows and outflows.

Inventory Valuation

The method used to value a company's inventory, impacting the calculation of profit.

Working Capital

The difference between a company's current assets and current liabilities, indicating liquidity.

Ratio Analysis

The use of ratios to evaluate the financial performance and position of a business.

Non-profit Organization

An organization that operates for purposes other than profit, often focused on social, educational, or charitable activities.

Suspense Account

An account used to temporarily hold amounts until they can be properly classified.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment.

Revenue Expenditure

Expenses incurred in the day-to-day running of a business, which are fully deducted in the accounting period they are incurred.