Coconote
AI notes
AI voice & video notes
Export note
Try for free
Introduction to Basic Terminology of Accounting
Dec 14, 2024
Basic Vocabulary of Accounting
Introduction
In today's lecture, we will understand the basic vocabulary of accounting.
This vocabulary is divided into 12 points.
Today, we will cover some points and the rest in the next lecture.
1. Transactions
A transaction means behavior or transaction.
In business, transactions are of two types:
Monetary Transactions:
Those that can be measured in money.
Non-Monetary Transactions:
Those that cannot be measured in money.
Monetary transactions are recorded, whereas non-monetary transactions are not recorded.
Types of Monetary Transactions
Cash Transactions:
Where cash is paid immediately.
Credit Transactions:
Where goods are given on credit.
2. Capital
The amount of money a businessman invests to start a business is called capital.
Drawing:
When a businessman withdraws money from the business for personal use.
3. Debtors and Creditors
Creditors:
Those from whom the business has purchased goods on credit and has to pay them.
Debtors:
Those to whom the business has sold goods on credit and has to receive payment from them.
4. Bad Debts
When the money is not recovered from a business's debtor and it becomes an unrecoverable debt, it is considered as a loss.
Conclusion
In today's lecture, we discussed a total of 6 points. In the next lecture, we will discuss the remaining points.
ЁЯУД
Full transcript