Lecture notes
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Some examples from this set of practice questions
1.
What is business transaction
Answer: A business transaction is an economic activity of the business that changes its financial position.Any exchange of goods or services for cash or on credit by the business with any other business or customer is called transaction.
2.
What is event?
Answer: An event is the consequence or result of a transaction.
3.
What is capital?
Answer: It refers to the amount invested by the proprietor in a business enterprise.Amount may be in the form of some cash,goods or assets
4.
What is drawings?
Answer: Any cash or value of goods withdrawn by the owner for personal use or any private payments made out of business funds are called drawings.
5.
What is liability?
Answer: It refers to the amount which the firm owes to outsiders. Liabilities=Assets - capital
6.
What is revenue?
Answer: Revenue is a amount received from the sale of given quantity of a commodity.
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