21. Matching Concept: Matching
means requires proper matching of expense with the revenue.
22. Capital Income: The term capital income means an
income which does not grow out of or pertain to the running of the business
proper.
23. Revenue Income: The
income which arises out of and in the course of the regular business
transactions of a concern.
24. Capital Expenditure: It means
an expenditure which has been incurred for the purpose of obtaining a long term
advantage for the business.
25. Revenue Expenditure: An expenditure that incurred in the
course of regular business transactions of a concern.
26. Differed Revenue Expenditure:
an expenditure which is incurred during an accounting period but is applicable
further periods also. Eg: heavy advertisement.
27 Bad Debts: Bad debts denote the
amount lost from debtors to whom the goods were sold on credit.
28. Depreciation: Depreciation
denotes gradually and permanent decrease in the value of asset due to wear and
tear, technology changes, laps of time and accident.
29. Fictitious Assets: These
are assets not represented by tangible possession or property. Examples of
preliminary expenses, discount on issue of shares, debit balance in the profit
and loss account when shown on the assets side in the balance sheet.
30. IntangIble
Assets : Intangible assets
means the assets which is not having the physical appearance. And it’s have the
real value, it shown on the assets side of the balance sheet.
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