S1 ET DCM1107 Self

# 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

1. Sales Revenue.
2. 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.