Classification of Activity

i. Revenue/ Income: Return or sales from Company’s or business activities.
a. Sales of products
b. Sales of services
c. Interest from saving
d. Gain from penalty
e. Commission received

ii. Expenditure: Payment or purchased from Company’s or business activities.
a. Purchase of stock
b. Rent
c. Insurance
d. Salary
e. Utilities
f. Fuel


iii. Asset: Company’s tangible or intangible that one possesses in operating company’s businesses.
a. Motor vehicles
b. Land
c. Building
d. Cash
e. Debtor
f. Machinery


iv. Liabilities: obligation of an entity arising from past transactions or events, in operating company’s businesses.
a. Loan from pay
b. Loan from creditor


v. Capital: capital needed by the company to finance its operations.
a. Shares issued
b. Owner owns fund