Accounting Basic Element

ASSETS:

Assets are the economic resources (having certain value) owned by a business on a particular date I which are expected to benefit the future operation of the business.

Or

Assets are the properties and possessions of a business both tangible (have physical existence) and e fliave no ohvsical existence).

te (have no physical existence).

Or

Assets are the things having certain value possessed by a business and receivable by a business on date. For example, cash, furniture, building, land, machinery, stock of goods, Debtors or receivable, Bank balance, 'Goodwill etc.

LIABILITIES:

Liabilities are the debts or obligations of a business.

Or

The outsider's (creditors etc.) claims against the assets of the business are known as "Liabilities". are two main parties who have chums, against the assets of a business; (a) Owner's claim; (b) claims. The owner's claim against the assets of a business is blown as owner's equity and 's claims against the assets of the business are known as "liabilities."

Or

Liabilities mean the total amount which a business is legally bound id pay to the outsiders, e.g, i, Bills payable, Accounts payable, Bank loan etc.

ACCOUNTING PERIOD:

It is a span of time for which a business generally prepares its financial statements (the statement to know the profit or loss of a business and to mow its financial position). Mostly the financial are prepared for one year but they may also be prepared for one month or for one quarter.

REVENUE:

All business organisations are engaged in providing goods or services to theif customers. The which a business charges its customers for these goods or services, measures the revenue of the

tOr It is the price of goods sold or services provided by a business to its customers.

Revenue is the inflow of assets (cash or debtors) in return for services performed or goods (sold) during an accounting period.

Or

It is inflow of cash and debtors (receivable) in exchange for goods sold or services rendered during mting period.