In order to understand the subject matter clearly one must grass with a following expression always used in business accounting them here is to enable the student to understand with the these often used concept before we hemark on accounting procedures and rules you may not that these terms can be applied to any business activity with the same connotation it means and event or a business activity which involves exchange of money or money is worth between parties that he went can be measured in terms of money and financial position of a person example transaction could be the gas or credit and receiving purchase of goods material and making payment creating an obligation to paid to the supply at future date the parties settle the transaction immediately by making payment in cash or bache it is called cash transaction in credit the payment is settled at the future date as per agreement between the party these are tangible articles of commodity in which year business deals these articles or or commodity sorry and times what may be class goods to one business home may not be goods to the other form it is not good the intention is to use it as a long term resource and sold but for buying them rendering with or without the object of earning points that Excess of revenue income over expense is called the profit it could be calculated for each transaction or for business as a whole the expensive over in comes for loss it could be transaction for business as a whole asset is resource owned by the business with the purpose of using it for generating time table the Capital Asset which have no physical existence and whose value was Limited by the rights and and ispated benefits that position confused upon the owners or known as interble acid they cannot be seen or felt all though they help to generate revenue in future example good will pattern right Trademark copyright brand equity designs intellectual property except also called the class into current and non current and as such as sale of consumption in the company normal operating cycle it is held primarily for the purpose of being traded it is due to be realised within 12 months after the reporting date or it is cash or cash equivalent unless it is restricted from being changed or used to settle a liability for at least 12 months after the reporting day.