N4 Introductory Financial Accounting | Student Book


Glossary A


Accounting Accounting is the process of managing the flow of money in and out of the company.


Analysis Cash Book An analysis Cash Book can take the place of a CRJ and CPJ. The Cash Book as a book of first entry has a receipt and a payment side. It takes the place of the CRJ and CPJ and it also replaces the bank account in the General Ledger.


Archive To archive means to store all the source documents of a business in a safe place.


Assets Assets are a business’ s resources/possessions and have a value. These are the things the business own. Assets can be tangible or intangible.


Audit


Auditing is to check transactions are being recorded completely and accurately. B


Bank reconciliation is the process by which the balance reflected by the bank statement at the end of the month is reconciled with the balance shown in the bank account of the business in the General Ledger.


Bank reconciliation statement is drawn up by a business to show how the bank account in the ledger and balance of the bank statement is reconciled.


Basic Accounting Which records to keep, how to keep them and how to file them.


Budget A budget is a financial plan for a defined period.


Business plan A business plan refers to a written document that comprehensively outlines what your business is, where it is going, and how it will get there.


C Capital


Capital is the money and/or other assets invested into a business by the owner. The owner can either use their own money, borrow money from a bank or use their own money as well as borrow money from the bank. Capital, or owner’s equity, is the owner’s worth or claim on the business.


Capital acquisition Capital acquisition is the means by which you acquire new assets for your business.


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