28 June

Trade Discount

Offering deduction of the agreed percentage of list price at the time selling goods is one way of giving a discount. Such a discount is called ‘trade discount’. It is generally offered by manufacturers to wholesalers and wholesalers to retailers. …

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28 June

Loss

The excess of expenses of a period over its related revenues its termed as loss. It decreases in owner’s equity. It also refers to money or money’s worth lost (or cost incurred) without receiving any benefit in return, e.g., cash …

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28 June

Expenditure

Spending money or incurring a liability for some benefit, service, or property received is called expenditure. The purchase of goods, purchase of machinery, purchase of furniture, etc. are examples of expenditure. If the benefit of expenditure is exhausted within a …

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28 June

Expenses

Costs incurred by a business in the process of earning revenue are known as expenses. Generally, expenses are measured by the cost of assets consumed or services used during an accounting period. The usual items of expenses are: depreciation, rent, …

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28 June

Revenues

These are the amounts of the business earned by selling its products or providing services to customers, called sales revenue. Other items of revenue common to many businesses are: commission, interest, dividends, royalties, rent received, etc. Revenue is also called …

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