(i) Depreciation : It is a fall in the real value of noncurrent asset due to passage of time, usage, obsolescence etc.
(ii) Revenue : It is are increase in assets without a corresponding increase in Liability or owner's investment.
(iii) Trade Discount : It means a deduction allowed from the list price, by a trader, customers when they make purchase in large quantities.
(iv) Current Assets: These are the assets which provide the benefit for a period less 1 year.

Following are the limitations of financial accounting:
(i) Incomplete information: The accountant measures only those events that are financial in nature, i.e., that are capable of being expressed in money. Nonmonetary items or events, however, significant they may be, are not measured or recorded in accounting. For example, competency of management, competition in the market, industrial relations, etc.
(ii) Inexactness: Accounting data is some-times based on estimations and it may be inaccurate. Therefore, profits and financial position disclosed by such accounts may not be true and exact. For example, stocks are also valued on some assumptions. Actual useful life of an asset cannot be accurately calculated for the purpose of depreciation.
(iii) Personal influence of accountant: Accounting may be influenced by the personal judgement of the accountant. He applies a choice between different methods of inventory valuation, depreciation methods, provision for doubtful debts, treatment of capital and revenue items and so on. Thus, due to lack of objectivity, income measured may not be true in certain cases.
(iv) Assets may not be shown at their real value: Fixed assets are shown at written down value, i.e., cost less depreciation. There may be a great difference between book value at which assets are shown and current replacement cost. Certain valueless assets are also sometimes shown in Balance sheet, such as, goodwill, patents and trademark, preliminary expenses, etc.
(v) Effect of price level changes not considered : Accounting statements are prepared at historical cost. Money as a measurement unit, change, it is not thus, considered while preparing Profit & Loss Account, thus, the accounting information will not show true financial results.
(vi) Non-monetary transactions are ignored: Financial statements record only monetary transactions. Certain important and valuable assets like Human Resources, do not find a place in a Balance sheet. This is because, there is no yard- stick to measure the value of Human Resources in monetary terms.

Development of Accounting : In ancient times, around 4000 B.C., accounting was used for recording wages and salaries, deposits and withdrawals of valuable goods (such as gold and silver) from the treasures of the king. Afterwards, it was used to record the receipts and payments and balancing of government financial transactions. During 1500 A.D., accounting was used by business firms for recording transactions related to business. In 1800 A.D., accounting was used to record transactions and also to provide information to various users of financial data.
Role of Accounting : While in the earlier times accounting was merely concerned with recording the financial events (i.e. record keeping activity). Now-a-days, accounting is done with the rationale of not only maintaining records, but also providing an information system that provides important and relevant information to various accounting users.
(i) Substitute of memory : As it is beyond human capabilities to remember each and every business transaction, accounting plays an important role in recording these transactions in the books of accounts.
(ii) Assistance to management : Management uses accounting information for short-term and longterm planning of business activities and to control various costs and budgets.
(iii) Comparative study : In order to ascertain the performance of the business, accounting enables comparison of current year's profit with that of previous years (intra-firm comparison)and also with other firms in the same business (inter-firm comparison).
(iv) Evidence in court: It acts as evidence that can be used or presented in the court, if any discrepancy arises in the future.

Qualitative characteristics are the attributes of accounting information which tend to enhance its understandability and usefulness. It must possess the characteristics of reliability, relevance, understandability and comparability
(i) Reliability :
Reliability means the users must be able to rely on the information. The reliability of accounting information is determined by the degree of correspondence between what the information conveys and the transaction or event that have occurred, measured and displayed.
(ii) Relevance :
To be relevant, information must be available in time, must help in prediction and feedback. Information is said to be relevant when it must influence the decision of users by confirming or correcting their past evaluation.
(iii) Understandability:
Understandability means decision makers must interpret accounting information in the same sense it is prepared and conveyed to them.
(iv) Comparability :
It is not sufficient that financial information is relevant and reliable at a particular time in a particular circumstances or for a particular reporting entity.

They are economic resources of an enterprise that can be usefully expressed in monetary terms. Assets are things of value used by the business in its operations. For example, Super Bazar owns a fleet of trucks, thus, provide economic benefit to the enterprise these item will be shown on the assets side of the balance sheet of the Super Bazar.
Assets can be broadly classified into two types: fixed assets & current assets.
Fixed Assets are assets held on a long-term basis, such as land, building, machinery, plant, furniture and fixtures. These assets are used for the normal operation of the business.
Current Assets are assets held on a short-term basis such as debtors (account receivable), stock, cash, bank balance etc.

Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a period, and the value of assets, liabilities and owner's equity.
The objectives of accounting are follows:
(i) To keep systematic records.
(ii) To protect business properties.
(iii) To ascertain the operational profit or loss.
(iv) To ascertain the financial position of business.