Unit 7
Table of Contents
May 08, 2026
Types of Capital
A) Owned/Borrowed Capital.
B) Fixed/Floating Capital.
C) Working Capital.
D) Gross Working Capital.
E) Net Working Capital.
F) Net Operating Working Capital.
Types of Revenue
A) Operating Revenue
- Sales Revenue.
- Service Revenue.
B) Gross Revenue
Gross revenue, often known as gross sales, is the entire amount of money your firm makes in a given accounting period before any deductions.
C) Net Revenue
The value of a company’s income after discounts, item returns, and business expenditures like commissions is referred to as net revenue or net sales.
D) Deferred Revenue
The income a firm makes before providing services or commodities to a client is referred to as deferred revenue or unearned revenue.
E) Accrued Revenue
The income earned by a firm for supplying products or services that have not yet been paid for by a client. It’s income that a company recognises but has yet to realise.
Classification of Expenditure
A) Capital Expenditure.
B) Revenue Expenditure.
C) Deferred Revenue Expenditure:
Deferred revenue expenditure refers to a type of spending that is revenue in nature but whose benefits last for more than one accounting period. Although the entire amount is usually spent in a single year, it is not fully charged to the Profit & Loss Account in that year because the benefit will be enjoyed over several future periods.
Classification of Receipts
A) Revenue Receipts.
B) Capital Receipts.
Profits/Losses
A) Capital Profits/Losses.
B) Revenue Profits/Losses.
Contingent
A) Contingent Assets.
B) Contingent Liabilities.