15. Solvent, 16. Insolvent, 17. Revenue for income, 18. Expense, 19. Loss, 20. On account

15. Solvent:

     A businessman is said to be solvent, when he is liable to pay his liabilities in full (i.e., when his assets exceed his liabilities).

16. Insolvent:

     A businessman is considered to be insolvent, when he is not able to pay his liabilities in full, i.e., when his assets are less than his liabilities.

17. Revenue or Income:

     Revenue or income refers to the earnings of a business. It includes the sale proceeds of goods, receipts for services rendered and earnings from interest, dividend, rent, commission, discount, etc.

18. Expense:

     An expense refers to an expenditure in return for which some benefit is received, and the benefit received is enjoyed and exhausted immediately. Cost of goods sold, salaries, printing and stationery, postage and telegram, rent, interest, commission, etc. are examples of expenses.

19. Loss:

     Loss refers to money or money's worth given up without any benefit in return. In other words, it refers to any expenditure in return for which no benefit is received. Loss of goods by fire, loss of cash by theft, damages paid to others, etc. are examples of losses.

     It may be noted that a loss is different from an expense. An expense brings some benefit, but a loss does not bring any benefit.

20. On Account:

     The term 'on account' may mean:

(a) Purchase or sale of goods or an asset on credit.

(b) Receipt or payment of money in part settlement of an existing account.

(c) Receipt or payment of money on account of previous dues receivable or payable.