JKBOSE Class 12th Accountancy Notes
Download Unitwise JKBOSE of Class 12th Accountancy Subject
JKBOSE Class 12th Accountancy Study Material Notes
- Assets: Resources owned by a company that have economic value.
- Liabilities: Obligations or debts owed by a company.
- Equity: The residual interest in the assets of a company after deducting liabilities.
- Revenue: Income generated by a company from its primary operations.
- Expenses: Costs incurred by a company in the process of generating revenue.
- Income Statement: A financial statement that shows the company's revenues, expenses and net income for a specific period.
- Balance Sheet: A financial statement that presents a snapshot of a company's assets, liabilities and equity at a specific point in time.
- Cash Flow Statement: A financial statement that shows the inflow and outflow of cash during a specific period.
- Trial Balance: A list of all the general ledger accounts and their balances to ensure that debits equal credits.
- General Ledger: A complete record of a company's financial transactions organized by account.
- Accruals: Recognition of revenue and expenses in the accounting period they occur regardless of when cash is received or paid.
- Depreciation: Allocation of the cost of a long-term asset over its useful life.
- Amortization: Allocation of the cost of an intangible asset over its useful life.
- Bad Debts: Uncollectible accounts receivable that are unlikely to be recovered.
- Accounts Receivable: Amounts owed to a company by its customers for goods or services provided.
- Accounts Payable: Amounts owed by a company to its suppliers or creditors for goods or services received.
- Cost of Goods Sold: The direct costs incurred in producing or acquiring products or services sold by a company.
- Gross Profit: Revenue minus the cost of goods sold.
- Net Profit: Revenue minus all expenses and taxes.
- Operating Income: Gross profit minus operating expenses.
- Return on Investment (ROI): A measure of profitability that indicates the efficiency of an investment.
- Earnings per Share (EPS): Net profit divided by the number of outstanding shares that indicating the portion of profit attributable to each share.
- Dividends: Distributions of profits to shareholders.
- Retained Earnings: Accumulated profits that are reinvested in the company.
- Capital Expenditure: Money spent on acquiring or upgrading long-term assets.
- Working Capital: The difference between current assets and current liabilities that reflecting a company's short-term liquidity.
- Break-even Point: The level of sales at which a company's revenue equals its total costs.
- Financial Ratios: Relationships between different financial values used to evaluate a company's performance and financial health.
- Current Ratio: Current assets divided by current liabilities that indicating a company's short-term liquidity.
- Debt-to-Equity Ratio: Total debt divided by shareholders' equity and measuring a company's leverage.
- Profit Margin: Net profit divided by revenue, representing the profitability of a company's operations.
- Cash Flow: The movement of cash into and out of a company over a specific period.
- Contingent Liabilities: Potential obligations that may arise depending on the occurrence or non-occurrence of future events.
- Audit: An independent examination of a company's financial records to ensure accuracy and compliance.
- Forensic Accounting: Investigative accounting used to detect and prevent financial fraud.
- Internal Controls: Policies and procedures implemented to safeguard assets and ensure accurate financial reporting.
- Taxation: The process of calculating, reporting and paying taxes owed to the government.
- GAAP (Generally Accepted Accounting Principles): Standard accounting guidelines followed in the United States.
- IFRS (International Financial Reporting Standards): Global accounting standards followed by many countries.
- FASB (Financial Accounting Standards Board): A private organization that establishes accounting standards in the United States.
- Cost Accounting: The process of tracking, analyzing and controlling costs within a company.
- Managerial Accounting: Accounting focused on providing information for internal decision-making and planning.
- Double-entry Accounting: A system where each financial transaction affects at least two accounts that ensuring accuracy and balance.
- Bookkeeping: The recording and organizing of financial transactions within a company.
- Inventory Valuation: Determining the monetary value of a company's inventory.
- Payroll Accounting: Recording and tracking employee compensation, benefits and deductions.
- Financial Statements: Formal reports presenting a company's financial position and performance.
- Accrual Accounting: Recording revenues and expenses when they are earned or incurred regardless of cash flow.
- Historical Cost: Recording assets at their original purchase cost, not adjusted for inflation or changes in market value.
- Cost of Sales: The direct costs directly associated with the production or acquisition of goods or services sold by a company.
JKBOSE Class 12th All Subject Notes
FAQs and Important Questions on JKBOSE Class 12th Accountancy Subject
FAQ: What is the role of an accountant?
Accountants play a crucial role in financial management and reporting. They are responsible for tasks such as preparing financial statements, recording transactions, analyzing financial data, ensuring compliance with tax regulations and providing financial advice to individuals or organizations.
FAQ: What is the difference between financial accounting and management accounting?
Financial accounting focuses on the preparation and reporting of financial statements for external stakeholders such as investors, creditors and regulatory authorities. Management accounting involves analyzing financial information to aid internal decision-making, budgeting, planning and performance evaluation.
FAQ: What are the main types of financial statements?
The main types of financial statements include the income statement (or profit and loss statement), balance sheet, cash flow statement and statement of changes in equity. The income statement shows a company's revenues, expenses and net income or loss over a specific period. The balance sheet presents the company's assets, liabilities and shareholders equity at a given point in time. The cash flow statement tracks the cash inflows and outflows during a period while the statement of changes in equity explains the changes in shareholders equity over time.
FAQ: What is the difference between a debit and a credit?
In accounting the debits and credits are used to record transactions in the general ledger. A debit entry increases an asset or expense account and decreases a liability, equity or revenue account. On the other hand a credit entry increases a liability, equity or revenue account and decreases an asset or expense account. Debits and credits are fundamental principles of double-entry bookkeeping ensuring that every transaction has equal and opposite effects on different accounts.
FAQ: What is the purpose of an audit?
An audit is an independent examination of an organization's financial records, systems and processes to ensure accuracy, compliance with laws and regulations and reliability of financial information. The primary purpose of an audit is to provide an opinion on the fairness and reliability of the financial statements. Audits enhance transparency, help identify potential errors or fraud and provide assurance to stakeholders such as investors, lenders and shareholders.