The Importance of Keeping Accounts (Junior Cert Business Studies): Flashcards
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Practise the cards
13 cards from this deck
Accountant
Accountant
Person who records & manages business financial information
Accounting/Bookkeeping
Accounting/Bookkeeping
Systematic recording of financial info in logical manner
Why keep financial records?
Why keep financial records?
Success, legal compliance & informed business decisions
Financial monitoring - available money
Financial monitoring - available money
Track how much money business has available at any time
Financial monitoring - customer debts
Financial monitoring - customer debts
Monitor how much money customers owe to business
Financial monitoring - business debts
Financial monitoring - business debts
Track how much business owes to suppliers & creditors
Business assessment - profit/loss
Business assessment - profit/loss
Establish if business made profit or suffered loss
Legal requirement - limited companies
Legal requirement - limited companies
Must maintain proper accounting records by law
Legal requirement - tax
Legal requirement - tax
Ensure accurate completion of tax returns for Revenue
Double-entry bookkeeping
Double-entry bookkeeping
System recording both parts of every financial transaction
How many aspects per transaction?
How many aspects per transaction?
Two - receiving part and giving part
Debit side (Dr) - left side
Debit side (Dr) - left side
Records what the business receives
Credit side (Cr) - right side
Credit side (Cr) - right side
Records what the business gives