Key Concepts & Rules (Grade 12 NSC Matric Accounting): Flashcards
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Practise the cards
10 cards from this deck
Assets
Assets
Valuable items business owns that help generate profits
Liabilities
Liabilities
Amounts the business owes to other parties
Owner's equity
Owner's equity
Net worth of business (Assets - Liabilities)
Accounting equation
Accounting equation
Assets = Liabilities + Owner's Equity
Debtors
Debtors
Customers who owe money to business for credit goods
Creditors
Creditors
Suppliers/parties to whom the business owes money
Accrued expenses
Accrued expenses
Costs owed but not yet paid by end of financial year
Prepaid expenses
Prepaid expenses
Costs paid but relating to next financial year
Depreciation
Depreciation
How much fixed assets decrease in value over time
When to debit an asset
When to debit an asset
When the asset increases