Accounting Terms

Things to remember

• The amount of money invested by an owner in the beginning or during the life of the business is known as capital.
• The amount of money payable by the business to outsiders on a specific point of time is known as liabilities.
• The office resources which are purchased for generating income or revenue is called assets.
• The materials or goods which remain unsold at the end of an accounting year are known as closing stock.
• Bank is a financial institution, which accepts deposits from the public in different accounts and grants loans to individuals and corporations against their securities.