Accounting Heads

                        Accounting Heads

What is Assets?

Assets are the resources owned and controlled by the business and company which provide expected future economic benefits.

·      Cash Resources

·      Building

·      Heavy machinery

·      Cash

·      Furniture

·      Merchandise inventory( stock)(Goods)(Trade Goods)

What is Expenditure?

Expenditure is the reduction in the value of an Assets as it is used to generate revenue.

e.g Building/ Repair something/Electronic bills.

·      Salaries/commission

·      Electronic Bill

·      Telephone Bill

·      Rent

·      Transport paid

·      Supplies/Stationary/pen/pages consumed

·      Advertising expense

What is Revenue?

Revenues are the amount that business earned from selling Goods and provided to services to customer.

·      Sales

·      Fee income

·      Commission Income

·      Consultancy/Service income

What is Liabilities?

Obligations (Liable to Pay)

Liabilities are the obligations of the company or amount pay to creditor

·      Account payable(Oral agreement)

·      Notes payable(Promissory note)(Written paper)

·      Loans/Bank Loan

·      Bank over draft

·      Accrued expense/takes service/payment outstanding expense

·      Unearned income/Before provide services

What is Owner’s equity?

Assets=Liababities+Ownwr”s equty