Term
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Definition
| Recording Data, classifying and summarizing data, Communicating the data |
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Term
| What is recording data? Businesses will keep records of all the money received and spent on things such as- |
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Definition
| sales, assets, purchases, rent, wages etc. |
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Term
| Classifying and summarizing data? Why is it important to classify and summarize data? |
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Definition
| so you can calculate how much profit or loss has been made. |
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Term
| what should Communicating the data do? |
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Definition
| should be able to tell the business if it is performing well. |
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Term
| What should happen to the communicated data? |
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Definition
| this info should be communicated to the managers and owners, they will then use this info to make the business more efficient. |
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Term
| Name all the users of the accounts. |
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Definition
| Managers, employees, customer, supplier, bank, government/tax inspectors, prospective investors, owners and shareholders. |
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Term
| Resources in the business= |
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Definition
| resources supplied by the owner. |
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Term
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Definition
| assets = capital+liabilities |
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Term
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Definition
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Term
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Definition
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Term
| what are assets? examples |
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Definition
| items the business owns. examples, property of any kind, buildings premises, land, motor vehicles, machinery, equipment, fixtures and fittings, stock, money @ the bank, cashers, debtors |
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Term
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Definition
| in the assets collumn, money owed to us by customers. |
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Term
| what are liabilities? examples |
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Definition
| items that the business owes or is in debt for. eg. Loans from the bank and individuals, creditors and mortgage. |
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Term
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Definition
| money we owe to supply us. |
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Term
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Definition
| this is the money the owner has invested into the business. |
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