(a) Fixed Assets: Fixed Assets are assets held on a longterm basis. Such as land Building Machinery etc. These assets are used for the normal operations of the business. 

(b) Revenue: These are the amount of the business earned by selling its product (or) services to customer called revenue. Example Sales, Commission received, Rent received etc. 

(c) Expenses:- costs incurred by a business in the process of earning revenue are called as . Expenses. 

Example:- Depreciation, Rent, Wages, Salaries etc. 

(d) Short term liability:- Short term liability are obligations that are payable within a period of one year. 

Examples:- Creditors, Bills payable, etc. 

(e) Capital:- Amount invested by the owner to the business is known as capital. 

Balance sheet / Equation = Capital = Assets – Liabilities. 

Example:- if, on a given date, the total Assets of a business are ?6,000 & the total liabilities of business are ?20,000 the excess of the total assets over total liabilities of the business (60,000 -20,000) ?40,000 will be owners capital.