EMS - GR8(TERM 1)

• Accounting

  Process of keeping track of all income and expenses
• Basic Accounting Concepts include keeping track of transactions, helping make decisions, calculating profit, recording debts, identifying fraud, and convincing investors
• Account types

  • Assets
  • Owners Equity
• Assets


  • Land & buildings
  • Vehicles
  • Furniture, computers, toolsrniture, computers, tools
  • Money in bank account
  • Money in cash register
  • Equipment
  • Cash Float
  • Petty cash
• Classification of businesses includes services to clients, retail, trade, and manufacturers
• Fixed assets


  • Things bought to improve effectiveness of the business and last a long time
• Deposit slip is used when a business deposits cash into their banking account to ensure money is paid into the correct account
• Manufacturers make their own products and sell them to consumers
• Receipts are issued by the business to acknowledge the receipt of payment
• Businesses make money by rendering services or selling products at a higher price
• Income


  Money received for services rendered
• Owners Equity


  Money supplied by owner, money taken by owner for personal use, current income
• Source Documents contain all necessary information regarding a transaction
• Transaction:

  Two parties involved, you (party 1) pays for something (the product) to the shop owner (party 2)