Classification of Accounts (Grade 12 NSC Matric Accounting): Flashcards
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The five main account categories in accounting
The five main account categories in accounting
Assets, liabilities, owner's equity, income, expenses
Non-current assets timeframe
Non-current assets timeframe
Resources kept for more than 12 months
Current assets timeframe
Current assets timeframe
Resources converted to cash within 12 months
Owner's equity formula
Owner's equity formula
Total Assets - Total Liabilities
Effect of income on owner's equity
Effect of income on owner's equity
Increases profit and therefore increases owner's equity
Effect of expenses on owner's equity
Effect of expenses on owner's equity
Decreases profit and therefore decreases owner's equity
Non-current liabilities payment period
Non-current liabilities payment period
Amounts owing paid over more than 12 months
Current liabilities payment period
Current liabilities payment period
Amounts owing paid within 12 months
The 12-month rule in account classification
The 12-month rule in account classification
Current = within 12 months; Non-current = over 12 months
Examples of tangible/fixed assets
Examples of tangible/fixed assets
Land, buildings, equipment, vehicles