Commerce Exam > Commerce Videos > Classification of Accounts
Classification of Accounts Video Lecture - Commerce
FAQs on Classification of Accounts Video Lecture - Commerce
| 1. What are the different types of accounts in accounting? |  |
Ans. In accounting, there are five main types of accounts: assets, liabilities, equity, revenue, and expenses. Assets are resources owned by the company, such as cash, inventory, and property. Liabilities are the company's obligations or debts, such as loans and accounts payable. Equity represents the ownership interest in the company, which includes capital contributed by the owner and retained earnings. Revenue accounts record income earned by the company, while expense accounts track the costs incurred in generating revenue.
| 2. How are assets classified in accounting? | |
Ans. Assets in accounting are classified into current assets and non-current assets. Current assets are those that are expected to be converted into cash or used up within one year or the operating cycle of the business, whichever is longer. Examples of current assets include cash, accounts receivable, and inventory. Non-current assets, on the other hand, are long-term assets that are not expected to be converted into cash within one year. Examples of non-current assets include property, plant, and equipment, as well as long-term investments.
| 3. What are the different types of liabilities in accounting? | |
Ans. Liabilities in accounting can be classified into current liabilities and non-current liabilities. Current liabilities are obligations that are expected to be settled within one year or the operating cycle of the business. Examples of current liabilities include accounts payable, short-term loans, and accrued expenses. Non-current liabilities, also known as long-term liabilities, are obligations that are not expected to be settled within one year. Examples include long-term loans, bonds payable, and pension liabilities.
| 4. How is equity calculated in accounting? | |
Ans. Equity in accounting represents the residual interest in the assets after deducting liabilities. It can be calculated by subtracting total liabilities from total assets. The formula for equity is: Equity = Total Assets - Total Liabilities. Equity can also be affected by additional capital contributions from the owner, net income or loss, and drawings made by the owner.
| 5. What is the difference between revenue and expenses in accounting? | |
Ans. Revenue and expenses are two key components of the income statement in accounting. Revenue represents the income earned by a company from its primary business activities, such as sales of goods or services. It is recorded as a credit entry in the revenue account. Expenses, on the other hand, are the costs incurred by a company in generating revenue. They are recorded as debit entries in expense accounts. The difference between revenue and expenses is used to determine the net income or net loss of the company.
Related Exams
About this Video
|
3.2K Views |
|
4.69/5 Rating |
|
Dec 23, 2024 Last updated |
Classification of Accounts for Commerce2024 is part of Commerce preparation. The notes and questions for Classification of Accounts
have been prepared according to the Commerce exam syllabus. Information about Classification of Accounts covers all important topics
for Commerce2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises
and tests below for Classification of Accounts.
Description
Video Lecture & Questions for Classification of Accounts Video Lecture - Commerce - Commerce full syllabus preparation | Free video for Commerce exam.
Information about Classification of Accounts
Here you can find the Classification of Accounts defined & explained in the simplest way possible. Besides explaining types of Classification of Accounts
theory, EduRev gives you an ample number of questions to practice Classification of Accounts tests, examples and also practice Commerce tests.
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
past year papers
,Objective type Questions
,study material
,practice quizzes
,Sample Paper
,Classification of Accounts Video Lecture - Commerce
,Semester Notes
,Previous Year Questions with Solutions
,Free
,Classification of Accounts Video Lecture - Commerce
,Viva Questions
,video lectures
,Important questions
,Classification of Accounts Video Lecture - Commerce
,Extra Questions
,ppt
,shortcuts and tricks
,Exam
,MCQs
,Summary
,mock tests for examination
;
Study Classification of Accounts on the App
Students of Commerce can study Classification of Accounts alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Classification of Accounts,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Classification of Accounts is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup