Flashcards in Chapter 10: Balancing Accounts, accounting equation, capital & revenue. Deck (8)
How often must the traditional 'T' account need to be balanced?
At regular intervals, often the month-end.
What is the balance b/d?
The account balance at the start of the next period.
What does the balance of an account tell us?
The balance of an account tells us info. such as:
The amounts of
Together with amounts of Assets & Liabilities.
What does the accounting equation always do?
It always balances.
What is expenditure classified between?
Expenditure is classified between capital & revenue expenditure.
What is income classified between?
Income is classified between capital income and revenue income.
What is the accounting equation another way of understanding?
The accounting equation is another way of understanding double-entry book keeping.
It shows how the dual aspect of book-keeping relates to the accounts.