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Key Accounting Terms Explained

Purchase return refers to the return of defective or unsatisfactory products to suppliers. Material facts are essential documents that form the basis of account books. Retail banking serves individual clients, while basic mathematics is sufficient for accounting operations.

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Kendrew Sujide
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66 views2 pages

Key Accounting Terms Explained

Purchase return refers to the return of defective or unsatisfactory products to suppliers. Material facts are essential documents that form the basis of account books. Retail banking serves individual clients, while basic mathematics is sufficient for accounting operations.

Uploaded by

Kendrew Sujide
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

32) What do we mean by purchase return in accounting?

Purchase return is a term used to record every defective or unsatisfactory


product returned to its supplier.

33) Define the term material facts in accounting

Material facts are the bills or any document that becomes the base of every
account book. It means that all those documents, on which account book is
prepared, are called material facts.

34) What are the MIS reports?

MIS reports are created to identify the efficiency of any department of a


company.

35) Define a company's payable cycle

It is the time required by the company to pay all its account payables.

36) Define retail banking

Retail banking is a type of banking that involves a retail client. These clients
are normal people and not any organizational customers.

37) How much mathematics knowledge is necessary or required in


accounting?

Not much knowledge, but the basic mathematical background is required in


accounting for operations like addition, subtraction, multiplication, and
division.

38) Define bills receivable

All types of exchange bills, bonds, and other securities owned by a merchant
that is payable to him are said as bills receivable.

39) Define depreciation and its types

Depreciation can be defined as the value of an asset that is decreasing as it is


in use. It has two types, such as:

 Straight line method


 Diminishing value method
 Annuity method
 Depletion method
 Written down value method.

40) Differentiate between consignor and consignee

Consigner is the owner of the goods, or you can say he is the person who
delivers the goods to the consignee. The consignee is the person who
receives the goods.

41) Define balancing in accounting

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