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ACCOUNT- A recording device used for the sorting accounting information into similar
ASSETS-A thing or value owned by an economic enterprise.
BAD DEBT- Debit, which is not recoverable.
CAPITAL- Whatever money or moneys worth proprietor brings into his business from
his private estate and properties.
CAPITAL EXPENDITURE- Cost incurred to acquire fixed asset, the benefit from
which is spread over several accounting period.
CREDIT NOTE- A note sent by the seller to giver conforming enhancement in the
amount due from him.
CREDITOR- The person to whom the business owes certain amount.
CURRENT ASSETS- The assets, which get converted into cash during the operating
cycle of the firm, limited to maximum 1year.
CURRENT LIABILITY- Liability which are payable within one year.
DEBIT NOTE- A note sent by the seller to the giver confirming enhancement in the
amount due from him.
DRAWING-Withdrawal of cash or goods by the owner from the business for personal
INCOME RECEIVABLE- Income due but not receivable.
INTANGIBLE ASSETS- Assets which cannot be seen or touched.
NET CURRENT ASSETS- Balance of asset arriving at after deducting current
liabilities from gross current assets.
SOLVENT PERSON- A person whose assets are more than or equal to liabilities is said
to be a solvent person.
INSOLVENT PERSON- A person is said to be insolvent when his liabilities are more
than his assets.