Accounting Terminologies

The art of recording transactions is called ------------

Purchase of car for wife by withdrawing money from business is an example of

Bank Loan is recorded as

• Liabilities

• Asset

• Revenue

Profit = Revenue – Expenses

• True

• False

Identify whether the following event is a transaction or not.

Placed an order with Sen & Co. for goods for $5,000

• Transaction

• Not a transaction

If a stock is valued at ‘cost or market price whichever is less’, this principle should be applied in each subsequent year. This is according to

Consider an ordinary calculator costing Rs. 100 may last for ten years. However, the effort involved in allocating its cost over the ten year period is not worth the benefit that can be derived from this operation. The cost incurred on calculator may be treated as the expense of the period in which it is purchased.

credit card company --------------- who has issued a credit card to a customer ---------------- once they have signed a legal contract

• Creditor and debtor

• debtor and creditor

Goods Returned from customer

• Purchase Return

• Sales Return

• Loss

Buildings $15,000. Furniture $1,500. Stock of Goods $20,000. Cash at the Bank of $5,000 are examples of

• Expenditure

• Assets

• Expenses

• Capital