Chapter 1, Problem 13QS

To determine

Concept Introduction:

Revenues:

The revenue is the income or gain generated by a business entity by selling of goods or providing of services to customers or clients. The revenue refers to the inflow of cash or cash equivalents into a business entity. It is also called turnover.

Expenses:

Expenses refers to the outflow of cash or cash equivalents from a business entity. Expense occurs while carrying out activities like manufacturing, maintenance, labor or advertisement. These expenses are incurred to help the business entity earn revenue during the current year or at a future time period.

Withdrawals:

The drawings made by the owner from the portion/share of the capital invested by him out of the total capital for personal purposes are called withdrawals.

To identify:

The items of revenues, expenses and withdrawals.