BASIC TERMS OF ACCOUNTING | Divisional Accountant | Sahakari Race Plus

Master the Basics of Accounting for the Upcoming Divisional Accountant PSC Exam! 📚💼Are you preparing for the Kerala PSC Divisional Accountant examination? A strong foundation in fundamental accounting terms is essential to scoring high in the commerce/accounting section! Here is a quick breakdown of the core accounting terms every aspirant must know: Assets: Resources owned by a business that hold economic value and provide future benefits (e.g., Cash, Machinery, Inventory, Land).Liabilities: Financial obligations or debts that a business owes to external parties (e.g., Bank Loans, Creditors, Bills Payable). Capital (Owner's Equity): The amount of money or assets invested by the owner into the business ($Capital = Assets - Liabilities$). Revenue: Total income earned by a business through its core operations, such as the sale of goods or rendering of services. Expenses: Costs incurred by a business in the process of generating revenue (e.g., Rent, Salaries, Electricity Bills). Drawings: Cash or goods withdrawn by the proprietor/owner from the business for personal use.Debtors: Individuals or entities who owe money to the business for goods or services bought on credit .Creditors: Individuals or entities to whom the business owes money for goods or services purchased on credit. Solvency & Insolvency: A business is Solvent when its assets exceed its liabilities (capable of paying debts). It becomes Insolvent when it is unable to meet its financial obligations.🎓 New Batch Announcement! Kickstart your preparation with our Special Divisional Accountant PSC Batch. Get expert-led classes, comprehensive study materials, chapter-wise mock tests, and previous year question breakdowns.