Giving examples, explain each of the following accounting terms :
Fixed assets
Revenue
Expenses
Short-term liability
Capital
Answers
The given terms have been explained with an example:
1. Fixed assets: Alternatively also known as long term assets, they are tangible property which cannot be converted into cash easily.
Example: Land, Buildings.
2. Revenue: The amount that a company or firm earns from its business operations.
Example: Tax earned by the government.
3. Expenses: It is the cost incurred by a company, firm or an individual for something in return( either goods or services).
Example: Salary paid to workers.
4. Short term liability: The obligations of a company or firm which are required to be cleared or paid off within the span of an year.
Example: Trade accounts payable.
5. Capital: It refers to the asset or money that a company or individual possess that is used to run a business, for the production of goods or services.
Example: capital goods are machines or equipment.
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