12 Terms You Should Know Before Start Studying Accounts, In order to understand the subject matter clearly, you must understand the following commonly used expressions always used in connection with business accounting. in this article we provide complete details for how to start for study accounts subject means we provide details for commonly used terms in accounts. If you can understand these terms then you may face accounts subject very easily. Now you can scroll down below n check more details for "12 Terms You Should Know Before Start Studying Accounts"
12 Terms You Should Know Before Start Studying Accounts(i) Transaction: It means an event or a business activity which involves exchange of money or money’s worth between parties. The event can be measured in terms of money and which changes the financial position of a person. Transaction could be a cash transaction or a credit transaction.
- (a) It is expected to be realized in, or is intended for sale or consumption in the Company’s normal Operating Cycle,
- (b) It is held primarily for the purpose of being traded,
- (c) It is due to be realized within 12 months after the Reporting Date, or
- (d) It is Cash or Cash Equivalent unless it is restricted from being exchanged or used to settle a Liability for at least 12 months after the Reporting Date.
Working Capital (Net) = Current Assets – Currents Liabilities.