CIMA C02 Key Terms

Financial accounting

Management accounting

Capital

Business

Limited liability

Asset

Liability

Tangible assets

Intangible assets

Drawings

Payable

Receivable

Current liabilities

Non-current liability

Tangible non-current asset

Intangible non-current asset

Current asset

Income statement

Gross profit

Net profit

Sales day book

Purchase day book

Sales returns day book

Purchase returns day book

Nominal ledger

Journal

Going concern

Accruals concept

Prudence

Consistency concept states that in preparing accounts consistency should be observed in two respects:

Materiality

Substance over form

Entity concept

Money measurement concept

Accruals or accrued expenses

Prepayments

Depreciation

Net book value

Depreciable amount

Straight line method

Reducing balance method of depreciation

The profit or loss on the disposal of a non-current asset

Non-current assets register

Intangible asset

Research

Development

Amortisation

Depreciable amount

Useful life

Carriage

Net realisable value

First in, first out (FIFO)

Average cost

LIFO (last in, first out)

Standard cost

Replacement cost

Unpresented cheques

Uncleared logements

Discount

Trade discount

Cash discount

Settlement discount

Output sales tax

Input sales tax

Error of transposition

Error of omission

Error of principle

Errors of commission

Compensating errors

Suspense account