Accounting Technical Terms (1–15)

• Assets – Resources owned by a business.

• Liabilities – Obligations owed to others.

• Equity – Owner’s residual interest in assets.

• Revenue – Income from business operations.

• Expenses – Costs incurred to earn revenue.

• Capital – Owner’s investment in the business.

• Drawings – Withdrawals by the owner for personal use.

• Journal – Book of original entry.

• Ledger – Book of final entry.

• Trial Balance – List of all ledger balances.

• Balance Sheet – Statement of financial position.

• Income Statement – Shows profit or loss.

• Cash Flow Statement – Tracks cash inflows and outflows.

• Debit – Entry on the left side of an account.

• Credit – Entry on the right side of an account.

Accounting Intermediate Terms (16–30)

• Accrual – Recognition of revenue/expenses when earned/incurred.

• Prepaid Expense – Payment made in advance.

• Outstanding Expense – Expense incurred but not yet paid.

• Depreciation – Reduction in asset value over time.

• Amortization – Gradual write-off of intangible assets.

• Provision – Estimated liability.

• Contingent Liability – Potential liability depending on future events.

• Bad Debts – Unrecoverable receivables.

• Contra Entry – Entry affecting both cash and bank.

• Petty Cash – Small cash fund for minor expenses.

• Bank Reconciliation Statement – Matches bank and cash book balances.

• Capital Expenditure – Spending on long-term assets.

• Revenue Expenditure – Day-to-day operational costs.

• Goods – Items bought for resale.

• Inventory – Stock of goods held.

Accounting Advanced Terms (31–45) 

• Accounts Receivable – Money owed by customers.

• Accounts Payable – Money owed to suppliers.

• General Ledger – Master set of accounts.

• Trial Balance – Summary of all debits and credits.

• Double Entry System – Every transaction affects two accounts.

• Matching Principle – Match expenses with related revenues.

• Going Concern – Assumes business will continue operating.

• Consistency Principle – Use same accounting methods over time.

• Conservatism Principle – Record potential losses, not gains.

• Materiality – Significance of financial information.

• Realization Principle – Revenue is recognized when earned.

• Accounting Period – Specific time span for reporting.

• Working Capital – Current assets minus current liabilities.

• Trial Balance – Check on ledger accuracy.

• T-Account – Visual representation of an account.

Meaning of Accounting

1)Definition: 2)Purpose: 3)Scope: 4)Importance: 

Process of Accounting (Accounting Cycle)

1. Identifying Transactions

2. Recording in Journal (Book of Original Entry) 

3. Posting to Ledger 

4. Trial Balance Preparation 

5. Adjusting Entries 

6. Preparing Financial Statements 

7. Closing Entries 

8. Post-Closing Trial Balance 

9. Reversing Entries (Optional) 

Types of Accounts

1) Personal Account 

 Related to individuals, firms, companies. Rule: Debit the receiver, Credit the giver.

2) Real Account 

 Related to assets and properties. Rule: Debit what comes in, Credit what goes out.

3) Nominal Account 

 Related to expenses, losses, incomes, and gains. Rule: Debit all expenses and losses, Credit all incomes and gains

Rules of Debit and Credit

Personal Account

Debit:- Receiver

Credit:-Giver

Real Account

Debit:- What comes in

Credit:-What goes out

Nominal Account

Debit:- All expenses and losses

Credit:- All incomes and gains

1) Business Entity Concept In Accounting 

2) Going Concern Concept In Accounting 

3) Cost Concept In Accounting 

4) Money Measurement Concept / Stable money Value In Accounting 

5) Matching Concept In Accounting 

6) Conservatism Concept In Accounting 

 7) Period Concept In Accounting 

8) Consistency Concept In Accounting 

9) Materiality Concept In Accounting 

10) Disclosure Concept In Accounting 

11) Dual Aspect Concept In Accounting 

Topics...

1) Capital  Expenditure In Accounting 

2) Revenue ExpenditureIn Accounting 

3) Capital Expenditure VS Revenue ExpenditureIn Accounting 

4) Difference between Capital & Revenue Expenditure In Accounting 

Topics...

1)Capital Receipts In Accounting 

2)Revenue ReceiptsIn Accounting 

3) Difference  between Capital Receipts & Revenue Receipts In Accounting 

Topics... 

1)Deferred Revenue Expenditure In Accounting 

2)Examples In Accounting 

Sub Topic :- 

1)  Reserve,

2) General Reserve,

Sub Topic :-

3) Specific Reserve,

4) Investment of Reserve,

5) Reserve and Reserve fund, 

Topic-

 7) Period Concept,

8) Consistency Concept,

9) Materiality Concept, 

Sub Topic :-

10) Secret Reserve,

11) Contingent Liability,

Sub Topic :-

12) Difference Between General Reserve & Provision,

13) Difference Between Reserve & Reserve Fund,

1) Meaning of Financial Management 

2) Objectives of Financial Management 

3) Importance of Financial Management 

4) Scope of Financial Management 

5) Financial Function 

6) Classification of Financial Function 

7) Organization of Financial Function 

8) Status and Duties of a Financial Manager 

9) Concept of Financial Management