Accountancy

Revenue expenditure does not improve the financial position of the business. Revenue expenditures are typically referred to as ongoing operating expenses.

Office equipment’s account is classified as Real account.

Shareholders are the owners of a company. A shareholder, also referred to as a stockholder, is any person, company, or institution that owns at least one share of a company’s stock.

Recovery of bad debt is a Revenue receipt. Revenue receipts are money received by a business as a result of its normal business operations.

General expenses, Financial expenses and Selling expenses are paid out of Gross Profit.

Transactions that a business does not record in any specialized journal are recorded in General journal.

Sales revenue is not an item of Balance Sheet. Sales revenue is the amount realized by a business from the sale of goods or services.

Balance Sheet is a statement showing the financial status of the comapany at any given time. The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company’s financial statements.

Auditing refers to Examination of financial information. A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent.