21/04/2026
1. Assets
Assets are resources owned by a business that have economic value and can provide future benefits.
Examples: cash, buildings, equipment, inventory.
2. Liability
Liabilities are obligations or debts that a business owes to others and must pay in the future.
Examples: loans, accounts payable, salaries owed.
3. Cash
Cash refers to money that is readily available for use in a business. It includes physical money and money in bank accounts.
4. Rent
Rent is the amount paid by a business for the use of property, such as office space or equipment. It is usually treated as an expense.
5. Bank
Bank in accounting refers to the financial institution where a business keeps its money or the account used to record transactions involving deposits and withdrawals.
6. Receipt
A receipt is a written or electronic document that proves a payment has been made or money has been received.
Here are three more important accounting terms added to your list:
7. Capital
Capital is the amount of money or resources invested by the owner into the business. It represents the ownerโs interest in the business.
8. Revenue
Revenue is the income a business earns from its normal activities, such as selling goods or providing services.
9. Expenses
Expenses are the costs incurred by a business in order to operate and generate revenue.
Examples: rent, salaries, electricity, transportation.
Academy Of Accounting
Colombo
