Asset a present economic resource controlled by the business as a result of past events.
Gross profit-revenue from sales less the cost of sales in the accounting period.
Capital the residual interest that the owner has in the assets of the business after all liabilities have been settled.
Expense a decrease in assets or increase in liabilities which result in a reduction of capital due to the owner.
General ledger - the complete set of ledger accounts used by a business to record transactions. It may also be referred to as a 'nominal ledger' or 'chart of accounts".
Journal - a record of accounting entries made to record non-routine transactions and to correct errors. Many journal entries relate to the preparation of the annual financial statements.
Income-consists of increases in assets or decreases in liabilities that result in an increase in capital due to the owner. correct errors.
Input taxis sales tax paid to suppliers which is suffered and paid on purchases by a business.
The journal is a record of accounting an accounting transaction recorded in the general ledger. The journal may be maintained in book form, a log or register in hard or soft copy.
Ledger account - a record of transactions assigned to a specific asset, liability, source of income or expense, along with a capital account for a sole proprietor. It will identify increases and decreases in that item during an accounting period.
Liability a present obligation of the business to transfer an economic resource as a result of past events.
Net profit-gross profit less expenses incurred during the accounting period.
Output tax-is sales tax charged on sales by a business and collected on behalf of the tax authority,
Settlement discount('early settlement discount' or 'prompt payment discount') is a discount offered by the seller to the buyer for early payment of a debt i.e. within a specified period of time before the normal due date.
Statement of financial position - a statement of a business's assets, liabilities and capital at a specific point in time.
Statement of profit or loss a statement of financial performance that shows the profit or loss earned by a business for an accounting period.
Taxable supplies are goods and services sold subject to sales tax.
Trade discount-is a discount given to customers ordering in large quantities or as an incentive for to encourage regular customers to place more orders.