Explain the following terms:.
1. Revenue...
2 Debtors...
3. Fictitious assets..
4 Working capital...
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Answers
Answer:
1)the department of the civil service collecting state revenue.
2)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.
3)Fictitious assets are the assets which has no tangible existence, but are represented as actual cash expenditure. ... Expenses incurred in starting a business, goodwill, patents, trademarks, copy rights comes under expenses which cannot be placed any headings. Fictitious assets have no physical existence.
4)Working capital, also known as net working capital (NWC), is the difference between a company's current assets, such as cash, accounts receivable (customers' unpaid bills), and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.
Answer:
Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income.
A debtor is an person, company or organization who owes money.
Fictitious assets are those assets which are not real but whose benefits are derived by the company over a long period of time.
E.g., The Net Loss of the company
Working capital is the difference between a company’s current assets and current liabilities. It is a financial measure, which calculates whether a company has enough liquid assets to pay its bills that will be due within a year.
Working Capital = Current Assets – Current Liabilities.