Accounting concepts

• The cash float is the cash placed in the tills or registers at

  the beginning of each day, so that there is enough change

  to give to customers paying cash.
• Long-term or non-current liabilities can be paid back over

  a period longer than a year.
• Current liabilities have to be paid back within a year

  (12 months) or less.
• Creditors, where money is owed by the business to

  suppliers when they bought goods on credit (on account).
• A bank overdraft is where the bank allows the business to

  spend more money than there is in their bank account,

  and then this money is owed to the bank.
• Income is money generated by selling goods or providing

  services.
• Expenses are payments made for goods or services needed

  in order to run the business on a daily basis.
• Profit is the money a business makes after taking all the

  income and deducting all the expenses.
• A loss takes place when the income is less than the

  expenses. The business therefore has not made a profit.
• A budget is a list showing the money you expect to earn

  (receipts) and the expenses you expect to have to cover

  (payments) within a specific period.
• Savings is the money that you put away after you have

  covered your expenses.
• When you do banking, you use the services that a bank

  provides.
• Financial records are records of the business's financial

  transactions.
• Financial transactions are events at which buyers and

  sellers exchange assets for money.