Day 1: Introduction to bookkeeping and accounting
Key terms and concepts
• Small business: defined by the Australian Taxation Office (ATO) as a business with an annual turnover of less than $2 million. They are often referred to as micro businesses.
• General ledger account: holds the details of business transactions of the same type.
• Debit: an entry in a general ledger account that represents the economic inflows from a business transaction.
• Credit: an entry in a general ledger account that represents the economic outflows from a business transaction.
• Chart of accounts: a numerical index used within general ledger accounts.
• In all business transactions the economic inflows (debit entries) must equal the economic outflows (credit ...
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