Basic Accounting Terminology

This video tutorial introduces key accountancy terms and concepts, including transactions, books of accounts, purchase and sales returns, profits, gains, discounts, receipts, assets, liabilities, solvency, inventory, capital, and contingent liabilities. It aims to strengthen the viewer's understanding of these fundamental topics, providing a foundation for further learning in accountancy.

What is the term used for the return of goods by a customer due to defects?

• Return Outward

• Return Inward

• Sales Return

• Purchase Return

When a business earns more revenue than its expenses, what is it called?

• Revenue

• Gain

• Profit

• Loss

Which type of discount is not recorded in the books?

• Volume Discount

• Rebate

• Trade Discount

• Cash Discount

What is the term for the amount received from selling fixed assets?

• Investment Income

• Sales Revenue

• Capital Receipt

• Revenue Receipt

Which type of asset can be easily converted into cash?

• Current Asset

• Intangible Asset

• Fictitious Asset

• Fixed Asset

What is the term for assets that do not have physical existence?

• Intangible Assets

• Tangible Assets

• Fictitious Assets

• Current Assets

What are liabilities that are payable within 12 months called?

• Current Liabilities

• Non-current Liabilities

• Fixed Liabilities

• Contingent Liabilities

What is the term for the amount withdrawn by the owner for personal use?

• Liability

• Drawings

• Expense

• Capital

What is a liability that may arise depending on future events?

• Fixed Liability

• Contingent Liability

• Non-current Liability

• Current Liability

What is the term for goods remaining unsold at the end of the year?

• Opening Stock

• Raw Materials

• Closing Stock

• Inventory