Key Terms in Accounting

Persons and/or other entities who owe to an enterprise an amount

for buying goods and services on credit.

• Customers

• Debtors

• Creditors

• Consumers

Persons and/or other entities who have to be paid by an enterprise

an amount for providing the enterprise goods and services on credit.

• Creditors

• Bankers

• Owners

• Sellers

__________ comprises of raw materials, semi-finished goods and

finished goods on hand on the closing date.

• Goods

• Product

• Stock

• Material

Total amount of goods procured by a business on credit and on

cash, for use or sale.

• Purchases

• Buying

• Expense

• Loss

Withdrawal of money and/or goods by the owner from the business for personal

use

• Loan

• Loss

• Drawings

• Balance

______ refers to the products in which the business unit is dealing.

• Material

• Goods

• Stock

• Finance

______is the deduction in the price of the goods sold. A seller may offer this to increase sales.

• Discount

• Gift

• Commission

• Appreciation

The excess of expenses of a period over its related revenues its termed as ____

• Expenditure

• Risk

• Loss

• Issue

A profit that arises from events or transactions which are incidental to business

such as sale of fixed assets, winning a court case, appreciation in the value of

an asset is called_____

• Luck

• Capital

• Gain

• Income

The excess of revenues of a period over its related expenses during an accounting year is _____

• Income

• Profit

• Loss

• Expense