Unit 4: Vocabulary

"From the accounting point of view, it doesn't matter when you actually receive the payment as I am using accrual basis accounting so I have already accounted for the invoice."

"Whichever method you use when accounting for tax, it is important to be consistent with the regulations in that method."

"The depreciation of the new machine will happen over 12 years."

"I don't expect that the new van will be worth anything after 12 months, so I decided to expense it in the accounts this year."

"The auditors checked through the list of fixed assets and made sure that all the machinery, vehicles and property listed really existed."

"All accountants should have a firm understanding of GAAP, and follow the principles closely."

"The government levies a higher tax on luxury goods, than on basic products."

"When the board reviewed the previous year's accounts they were pleased to see that the net earnings had increased."

"When the company was audited, it was noticed that $12,000 of income had been omitted from the tax return."

"After the merger Questcore became a public company and the value of their shares has increased by over 30%."

"The new premises cost $100,000 but as we will be using reducing balance depreciation over 5 years, the first year will cost us the most."

"Due to the Christmas season, revenues in shops are usually higher in the last quarter of the year than in the first."

"As a potential investor the most significant figures for me are the total profit and the liabilities."

"Tax accounting provides a simpler method of calculating your tax liability."

"Tax revenues fall when workers lose their jobs, and the taxable income that goes with them."