Introduction to Basic Accountancy Terminologies

The video tutorial introduces key accountancy terms such as capital, proprietor, assets, goods, purchases, sales, credit, debt, expenses, and transactions. It uses a practical example of Peter's grocery business to explain these concepts, highlighting the differences between assets and goods, cash and credit transactions, and the roles of creditors and debtors. The tutorial emphasizes the importance of understanding these terms for effective business decision-making and record-keeping.

What is the term used for the money brought into a business by its owner?

• Profit

• Investment

• Capital

• Revenue

In Peter's business, what are the items like chairs and tables classified as?

• Goods

• Liabilities

• Fixed Assets

• Expenses

For a bookstore owner, what would be considered as goods?

• Furniture

• Books

• Electronics

• Stationery

What is the term for purchases where payment is made immediately?

• Deferred Purchases

• Cash Purchases

• Installment Purchases

• Credit Purchases

Who is considered a creditor in a transaction?

• The person who sells goods

• The person who gives credit

• The person who receives goods

• The person who pays cash

What are recurring payments like rent and electricity bills classified as?

• Assets

• Expenses

• Investments

• Liabilities

What is the term for the exchange of goods or services for money in accounting?

• Transactions

• Investments

• Liabilities

• Assets