Key Concepts (Grade 12 NSC Matric Accounting): Flashcards
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Practise the cards
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Role of directors in a company
Role of directors in a company
Manage & oversee company's daily operations
What independent auditors provide
What independent auditors provide
Unbiased opinion on financial statement accuracy
Who are shareholders?
Who are shareholders?
Actual owners of the company
Unqualified auditor's report meaning
Unqualified auditor's report meaning
Financial statements acceptable in all areas
Limited liability definition
Limited liability definition
Shareholders only lose investment, not liable for company debts
What are dividends?
What are dividends?
After-tax profits paid to shareholders
Issued share capital
Issued share capital
Actual number of shares sold to shareholders
Business entity rule (GAAP)
Business entity rule (GAAP)
Company finances kept separate from shareholders' personal funds
Going concern principle
Going concern principle
Assumes company will continue operating in future
Historical cost principle
Historical cost principle
Assets recorded at price originally paid for them