Accounting Concepts and Source Documents

These flashcards cover key vocabulary related to accounting concepts and source documents based on the lecture notes.

EFT-voucher

An electronic document issued by the bank when transactions are done via internet banking or online banking.

Cash Invoice

A document that specifies cash sales between a buyer and a seller, including quantity, description, and price of goods/services.

Bank Statement

A statement from the bank showing the opening balance, deposits, payments, and the closing balance for a specific period.

Source Document

A document issued or received proving that a transaction has taken place, containing information about the nature of the transaction.

Current Assets

Assets that can be converted into cash within 12 months, such as cash, inventory, and accounts receivable.

Liabilities

Debts of the business; obligations that it needs to pay off.

Equity

The owner's investment in the business, representing the net assets owned after liabilities are deducted.

Operating Expenses

The costs incurred in the process of running a business, including salaries, rent, and utilities.

Balancing the Trial Balance

Ensuring that the total debits equal total credits in the accounting records.

Sole Proprietor

A business owned by one person who is responsible for all profits and losses.