Accounting Terms

Things to remember

• Bank is financial institution, which accepts deposits from the public in different accounts and grants loans to individuals and corporations against their securities. 
• The excess amount of incomes over expenditure is known as profit.
• Expenses incurred but not yet paid are called outstanding expenses. 
• The amount of bill relating to credit sale drawn by the business and accepted by the debtor for paying the amount of goods purchased on credit on a certain date is called bills payable.
• The materials or goods which remain unsold at the end of an accounting year are known as closing stock.
• The amount of money invested by an owner in the beginning or during the life of the business is known as capital.