Definition: Fixed Assets, Short Term Liabilities, Revenue and Capital

Definition: Fixed Assets, Short Term Liabilities, Revenue and Capital

Fixed assets- Fixed assets are financial capital owned by a business, which cannot be straightforwardly liquidated (converted into cash). These are held for long-term and enlarge the profit earning ability of the business, over diverse accounting periods. These assets are not destined for sale; for example, land, building, equipments etc.

Short-term liabilities- A debt or current liability arising from average business operations and recurring expenses that is predictable to be fulfilled within one year. Those liabilities that are incurred with an intention to be paid or are payable within a year; for example, bank overdraft creditors, taxes payable, bills payable, outstanding wages, vendor invoices, short-term loans, etc.

Revenue- Revenue is the quantity of currency/cash that a company essentially receives during a exact period, including discounts and deductions for returned commodities. It refers to the total received from day to day activities of business, viz. amount received from sales of goods and services to customers; rent received, payment received, dividend, royalty, interest received, etc. are items of revenue that are added to the capital.

Capital- Capital can refer to funds raised to maintain an exacting business or venture. It refers to the quantity invested by the owner of a firm. It may be in form of money or asset. It is a responsibility of the business towards the owner of the firm since business is treated to divide or separate from the owner. It can also mean stock or ownership in a company.