UKSSSC AAO key terms

A method of book-keeping in which every transaction is recorded in two accounts, one debited and one credited, so that total debits always equal total credits.

The first record of a transaction showing the date, the accounts debited and credited, the amounts, and a short narration explaining why the transaction occurred.

A book containing all accounts in classified form, where journal entries are posted so that the balance of each account can be worked out at any time.

A statement listing debit and credit balances of all ledger accounts on a given date to check that total debits equal total credits.

A temporary account opened to hold the difference in a trial balance so that books may be closed, later cleared when the error is located and rectified.

A book-keeping mistake where a transaction is recorded in the wrong class of account, such as treating a capital expense as revenue expense, without affecting trial balance agreement.

Spending on acquiring or improving a fixed asset whose benefit extends over several years, recorded in the balance sheet rather than charged to profit.

Routine spending on day-to-day running of a business, such as rent, wages or repairs, charged to the profit and loss account of the period.

An expense incurred in the current period but not yet paid, recorded as a liability and charged to the profit and loss account of that period.

An amount paid in advance for a benefit to be consumed in a future period, shown as a current asset and excluded from current period expense.

The systematic allocation of the depreciable cost of a fixed asset over its useful life, reflecting wear, tear and obsolescence.

The book value of a fixed asset calculated as original cost less accumulated depreciation charged to date, used in the diminishing balance method.

A statement prepared to explain differences between the cash book bank balance and the bank statement balance on a particular date.

Refusal by a bank to pay a cheque, for example due to insufficient funds, after which the entry in the cash book must be reversed.

The first part of the final accounts showing gross profit or loss by comparing net sales with cost of goods sold for the period.

The excess of net sales revenue over the cost of goods sold, before deducting operating expenses and non-operating items.

A financial statement summarising all indirect incomes and expenses of a period to arrive at net profit or net loss.

A statement of assets, liabilities and capital of a business as at a particular date, showing the financial position at that moment.

The excess of current assets over current liabilities, indicating the funds available to finance day-to-day operations of a business.

A liquidity measure found by dividing current assets by current liabilities, showing ability to meet short-term obligations as they fall due.

The ease with which an asset can be converted into cash without significant loss of value, or a firm's ability to meet short-term obligations.

An accounting assumption that the entity will continue operating in the foreseeable future, so assets are not valued at break-up prices.

An accounting convention requiring the same policies and methods to be applied from period to period unless a change is justified and disclosed.

The idea that information is material if its omission or misstatement could influence economic decisions of users of financial statements.

All information used by an auditor to support conclusions on which the audit opinion is based, gathered through inspection, observation, enquiry and confirmation.

The policies and procedures established by management to safeguard assets, ensure accuracy of records and promote operational efficiency.

An independent appraisal function within an organisation that reviews accounting and operating controls and reports findings to management.

A written plan listing the audit procedures to be performed, the extent of testing and the timing, prepared before the audit begins.

An auditor's conclusion that, except for the effect of a specific matter, the financial statements give a true and fair view.

An auditor's conclusion that misstatements are both material and pervasive, so the financial statements do not give a true and fair view.

A statement by an auditor that no opinion can be expressed because a limitation on scope is material and pervasive.

The country or state in which a person has a permanent home and to which they intend to return, relevant in legal and service matters.

Basic rights guaranteed by Part III of the Indian Constitution, enforceable in courts, covering equality, freedom, exploitation, religion, culture and constitutional remedies.

Guidelines in Part IV of the Indian Constitution directing state policy towards social and economic welfare, not directly enforceable in courts.

The elected head of a Gram Panchayat, the village-level unit of local self-government in India.

A high-altitude alpine meadow in Uttarakhand, used seasonally for grazing and known for its scenic and ecological value.

The five sacred river confluences in Uttarakhand, namely Vishnuprayag, Nandprayag, Karnaprayag, Rudraprayag and Devprayag.

The comparison of two quantities of the same kind by division, and the statement that two such comparisons are equal, used to solve sharing and scaling problems.

A fraction or ratio expressed with denominator one hundred, useful for comparing quantities and computing profit, loss, increase or decrease.

Interest computed only on the original principal for the whole period, equal to principal multiplied by rate and time divided by one hundred.

A form of deductive reasoning with two premises leading to a conclusion, tested in exams by checking which conclusions logically follow.