4TH QUARTER

assets

there are items that are of value and are owned by business.

current assets

-are assets that are expected to be converted into cash or other assets within a period of one year or within the normal operating business

noncurrent assets

-assets that are not expected to be converted into cash within a period of one year, or within the normal operating cycle of a business.

tangible assets

-have PHYSCIAL SUBSTANCE. They are likely to be the assets that are used by the business to facilitate the production of goods or the provision of service,

intangible assets

-assets WITHOUT PHYSICAL FORM. This means they cannot be physically touched.

liabilities

-are the debts of a business.

current liabilities

-are debts and obligations that should be paid off in a period not to exceed one year.

non current liabilities

-are the long-term debts of a business that will be paid off for at least one year away.

owner’s equity

-it reflects the amount the owner has invested in the business

owner’s investment

“the amount of money provided by the owner or other investor”

retained earnings

-these are the amount retained from profits

single-entry bookkeeping

-it is as its simplest for it can be as basic as the maintenance of only a receipts and payment account

cashbook

-it records all the transactions involving money either being received or being spent.

double-entry bookkeeping

it is the standard bookkeeping used by many business.

manual method

a traditional way of recording financial transaction. It is paper based.

computerized bookkeeping

it is new and innovative, it allows for a faster recording of business or financial transactions.