To pass this unit, please study the 14 vocabulary words below.
- asset
- authorize
- daybooks
- double entry bookkeeping
- ensure
- expenditure
- income
- incorrect
- liability
- nominal code
- post
- return
- single entry bookkeeping
- T-accounts
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a resource in the possession of a company which is available for use
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"The auditors checked the factory to make sure that all the assets listed in the accounts were there."
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to give permission to happen
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"All purchases over five thousand dollars must be authorized by accounts payable."
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a journal of financial transactions entered on the day that they happened
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"I hate working with daybooks, it is so much easier to use a computerized accounting system."
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a system of keeping financial records where each transaction has a debit and a credit posted
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"The majority of experienced bookkeepers use double entry bookkeeping as it allows them to check that both sides agree."
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to make certain that something happens
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"All business owners should ensure that their tax returns are received by the Inland Revenue by 31st April."
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all money spent
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"The director stopped the lunch program for employees so he could reduce expenditure and save money."
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all money received
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"The company is looking for a way to increase its income, so they are talking about expanding into a new market."
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wrong, false
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"John wasn't paying attention so the answer he got was incorrect."
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a company's debt or obligation
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"The company shut down when the accounts showed that the liabilities were larger than the income and assets."
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a reference number which allows the grouping of financial transactions
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"It took me ages to remember all of the nominal codes, but now I do it is much quicker to enter invoices into the system."
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to make an entry in an accounting ledger or software system
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"When you post a transaction in the system, the programme will automatically post the second side of it."
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a form which is submitted to a tax authority
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"When James had finished the clients' tax return he gave it to his supervisor to check before sending to the Inland Revenue."
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a simple system of keeping financial records, where transactions are entered only once
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"As Bob wasn't very good at maths he used single entry bookkeeping to keep track of his daily transactions."
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an informal word for a set of financial records using double entry bookkeeping, with debits entered on the left and credits on the right
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"You should remember that each T-account should balance. If it doesn't, there must be a mistake somewhere."