Question

Explain the following Accounting Terms and give any two examples for each term. (8)

(a) Current Assets

(b) Drawings

(c) Deferred Revenue Expenditure

(d) Capital Expenditures
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Answer 1

Answer:

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Answer 2

Explanation:

a) Current Assets- Current assets are those assets that can be converted into cash in hand within a year. eg stock and cash

b) Drawings- Money or assets withdrawn by the owner from the business for personal use is known as drawings. eg. withdrawn money for purchasing private vehicle

c) Deferred Revenue Expenditure- Deferred Revenue Expenditure is the expenditure which is revenue in nature but whose benefit is derived in future year. eg Subscriptions and prepaid insurance

d) Capital Expenditure- Expenditure incurred by a business on acquiring or maintaining assets by a business is known as capital expenditure. eg land and building