Saturday, 23 August 2014

BASIC ACCOUNTING INTERVIEW SHORT QUESTIONS (21-30)



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.

30IntangIble 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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