NIOS Class 10 Accountancy — Flashcards for Quick Revision

A: A business transaction is an exchange of goods, services, or any other activity for money or money's equivalent. It also includes exchange of money. It is an event of financial nature connected with b

A: A businessman cannot remember a large number of daily transactions. Written records help in knowing profit, amount payable to suppliers, and amount receivable from customers later.

A: Book-keeping means maintaining proper records of business transactions. It is concerned with recording financial data in a significant and orderly manner.

A: Accounting concepts are the basic assumptions, rules, and principles used as the basis for recording business transactions and preparing accounts. They include Business Entity, Money Measurement, Goin

A: Accounting conventions are common practices followed in recording and presenting accounting information. They have developed through regular use and help make financial statements uniform and comparab

A: The Business Entity Concept assumes that the business enterprise and its owners are two separate entities for accounting purposes. So, business transactions are recorded from the point of view of the

A: Capital is the amount invested by the owners in the business. It is also called owner's equity. It shows the owner's stake in the assets of the business. In a sole proprietorship, capital is contribut

A: Drawings are the amount of cash or goods taken by the proprietor from the business for personal or domestic use. They reduce the owner's stake in the business.

A: An asset is anything owned by an individual or business that can be valued in money. Assets help the firm get cash or a benefit in future. Examples include land, building, machinery, furniture, stock,