ACCA REVISION NOTES WITH
CORRECT DEFINITION 100%
VERIFIED HIGHLY CLASSIFIED FOR
DISTINCTION GRADING 2024 **
Absorption costing (ANSWER)focuses on the total cost of producing
one unit of output, includes fixed production overheads in valuation cost
of production
Account (ANSWER)Accounts receivable location where all items
relating to one particular group are recorded. For example, cash items
are recorded in the cash account.
Account code (ANSWER)a unique group of numbers and/or letters that
is used to identify an item and classify it into a particular group.
Accounts receivable (ANSWER)The total amount of money owed to a
business.
Accounting Equation (ANSWER)Assets = Liabilities + Equity
Aged receivables (ANSWER)Analysis showing all the outstanding
amounts of money owed to each supplier and how overdue it is
,Analyzed cash book (ANSWER)analyses the money coming in and
money going out according to the type of transaction
Analyzed column cash book (ANSWER)analyses the money coming in
and money going out according to the type of transaction
Asset (ANSWER)a resource controlled by a business as a result of
something that happened in the past from which economic benefits
(things which make the company better off financially) are expected to
flow in the future
Back-up (ANSWER)maintaining a second copy of the records in case
anything happens to the original set. In computerized accounting, this
might be on hard drives kept off-site or in cloud storage
automated bank transfer (ANSWER)is a way to transfer money directly
from a bank account for one-off payments
BACS (ANSWER)stands for bankers automated clearing services in the
UK. ... is a way to transfer money directly from a bank account for one-
off payments.
Balance (ANSWER)The difference between the incoming cash and
outgoing cash
, Balance brought down (b/d, brought forward, b/f) (ANSWER)is the
balance on an account at the beginning of an accounting period. It equals
the balance carried down from the end of the last accounting period.
Balance carried down (c/d, carried forward, c/f) (ANSWER)is the
balance on an account at the end of an accounting period. It becomes the
balance brought down at the start of the following accounting period.
Balance off (Close off (the account)) (ANSWER)work out the difference
between money received and money paid out. The difference is then
carried down to the next accounting period
Bank reconciliation (ANSWER)is a statement that reconciles the bank
account balance in the general ledger with the balance of cash held at the
bank as shown on the bank statement
Bankruptcy (ANSWER)is the legal status of a person or entity who
cannot pay their debts. It is imposed by the court
Batch posting (ANSWER)collecting transactions or tasks together to
process in a group
Bonus (ANSWER)an additional amount paid to an employee above their
standard rate of pay
Bookkeeping (ANSWER)the act of recording financial transactions
CORRECT DEFINITION 100%
VERIFIED HIGHLY CLASSIFIED FOR
DISTINCTION GRADING 2024 **
Absorption costing (ANSWER)focuses on the total cost of producing
one unit of output, includes fixed production overheads in valuation cost
of production
Account (ANSWER)Accounts receivable location where all items
relating to one particular group are recorded. For example, cash items
are recorded in the cash account.
Account code (ANSWER)a unique group of numbers and/or letters that
is used to identify an item and classify it into a particular group.
Accounts receivable (ANSWER)The total amount of money owed to a
business.
Accounting Equation (ANSWER)Assets = Liabilities + Equity
Aged receivables (ANSWER)Analysis showing all the outstanding
amounts of money owed to each supplier and how overdue it is
,Analyzed cash book (ANSWER)analyses the money coming in and
money going out according to the type of transaction
Analyzed column cash book (ANSWER)analyses the money coming in
and money going out according to the type of transaction
Asset (ANSWER)a resource controlled by a business as a result of
something that happened in the past from which economic benefits
(things which make the company better off financially) are expected to
flow in the future
Back-up (ANSWER)maintaining a second copy of the records in case
anything happens to the original set. In computerized accounting, this
might be on hard drives kept off-site or in cloud storage
automated bank transfer (ANSWER)is a way to transfer money directly
from a bank account for one-off payments
BACS (ANSWER)stands for bankers automated clearing services in the
UK. ... is a way to transfer money directly from a bank account for one-
off payments.
Balance (ANSWER)The difference between the incoming cash and
outgoing cash
, Balance brought down (b/d, brought forward, b/f) (ANSWER)is the
balance on an account at the beginning of an accounting period. It equals
the balance carried down from the end of the last accounting period.
Balance carried down (c/d, carried forward, c/f) (ANSWER)is the
balance on an account at the end of an accounting period. It becomes the
balance brought down at the start of the following accounting period.
Balance off (Close off (the account)) (ANSWER)work out the difference
between money received and money paid out. The difference is then
carried down to the next accounting period
Bank reconciliation (ANSWER)is a statement that reconciles the bank
account balance in the general ledger with the balance of cash held at the
bank as shown on the bank statement
Bankruptcy (ANSWER)is the legal status of a person or entity who
cannot pay their debts. It is imposed by the court
Batch posting (ANSWER)collecting transactions or tasks together to
process in a group
Bonus (ANSWER)an additional amount paid to an employee above their
standard rate of pay
Bookkeeping (ANSWER)the act of recording financial transactions
