This document defines common accounting terminology used for entities, events, transactions, assets, liabilities, capital, purchases, sales, stock, receivables, payables, expenses, gains, revenue, profit and loss, and balance sheets. Key terms include assets, liabilities, equity, revenue, expenses, gains, losses, opening and closing stock, receivables, payables, trading account, gross and net profit/loss, and balance sheet items like trade debtors and creditors.

1. Basic Accounting Terminology Entity Event Transaction Voucher Entry Narration Assets Current Assets Fixed Assets Tangible Assets Intangible Assets Liabilities Short - term liabilities Long - term liabilities Capital Drawings

2. Basic Accounting Terminology Purchases Purchases Return Sales Sales Return Stock Raw Material Work – in - progress Finished Goods Opening Stock Closing Stock Receivables Payables Expenditure Income

3. Basic Accounting Terminology Expenses Gains Revenue Trading Account Gross Profit Gross Loss Profit & Loss Account Net Profit Net Loss Balance Sheet Trade Debtors Trade Creditors