Giving Examples, explain Each of the Following Accounting Terms:- Accounting

Giving examples, explain each of the following accounting terms: Fixed assets Revenue Expenses Gain Profit Capital Short-term liabilities
Giving examples, explain each of the following accounting terms:
  • Fixed assets 
  • Revenue 
  • Expenses
  • Gain 
  • Profit 
  • Capital
  • Short-term liabilities

Fixed assets: Fixed Assets refer to those assets which are held for continued use in the business to produce goods and services and not meant for resale.

  1. Land and Building
  2. Plant and Machinery,
  3. Office furniture,
  4. Vehicles such as company trucks.

Revenue: Revenues refer to the amount received from the day-to-day activities of the business entity.

  1. Commission received,
  2. dividend,
  3. Sales
  4. Interest revenue
Expenses: An expense in accounting is the money spent, or costs incurred, by a business in its effort to generate revenues.

  1. Wages,
  2. salaries,
  3. commissions,
  4. Repairs and maintenance,
  5. Rent.
Gain: A profit that arises from events or transactions which are incidental to business such as the sale of fixed assets, appreciation in the value of an asset.

    1. profit on the sale of fixed assets, 
    2. appreciation in the value of an asset, 
    3. profit on the sale of an investment.
    Profit: This refers to the excess of revenue over the expense. It is normally categorized into gross profit or net profit.
    1. Goods sold above its cost.
    Capital: The capital means the assets and cash in a business, It refers to the amount invested by the owner of a firm. It may be in form of cash or asset.

    1. cash, 
    2. machinery, 
    3. receivable accounts, 
    4. property, or houses.
    Short-term liabilities: Short-term liabilities are the liabilities that are incurred to be paid or are payable within a year.

    1. Bank overdraft creditors,
    2. Bills payable,
    3. Outstanding wages,
    4. Short-term loans.

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