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Explain the following terms: (i) Revenue, (ii) Debtors, (iii) Fictitious Assets and (iv) Working Capital |
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Answer» Solution :i) Revenue - Revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. ii) DEBTOR - A debtor is a person, company, or other entity that owes money. In other words, the debtor has a debt or LEGAL OBLIGATION to pay the amount owed. iii) Fictitious assets-fictitious assets are deffered revenue expenditure whose benefit is derived over LONG period of time.Even accumulated losses are also fictitious assets as they are written off over a period of time. iv) Working Capital - The difference between the Current Assets and Current Liabilities is known as Working Capital |
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