Explain the following terms:
1. business transactions
2. Capital
3. Stock
4. Debtors
Answers
Answers
1. A business transaction is an economic event with a third party that is recorded in an organization's accounting system. Such a transaction must be measurable in money.
2. Capital consists of human-created assets that can enhance one's power to perform economically useful work. ... Capital goods, real capital, or capital assets are already-produced, durable goods or any non-financial asset that is used in production of goods or services.
3. A stock is a general term used to describe the ownership certificates of any company. A share, on the other hand, refers to the stock certificate of a particular company. Holding a particular company's share makes you a shareholder.
4. A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities – such as bonds – the debtor is referred to as an issuer
Explanation:
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