• Capital is defined as the large amount of money which is used to start the business or which the person invest in order to make more amount of money. The person could the capital to refer the machinery and buildings which are required to produce the goods.

• The different kinds or the types of the transactions which increase as well as decrease the capital are:

1. The entry (credit or debit) make to:

Rise of Increase in Revenue (Credit)

Decrease in expense (Credit)

Post the fresh capital that is introduced through the owner (Credit)

Post the drawings (Debit)

Any valuable thing which has monetary value and owned by a business, is its asset. In other words, assets are the monetary values of the properties or the legal rights that are owned by the business organisations.

Fixed Assets− These are those assets that are hold for the long term and increase the profit earning capacity and productive capacity of the business. These assets are not meant for sale, for example, land, building machinery, etc.

Current Assets− Assets that can be easily converted into cash or cash equivalents are termed as current assets. These are required to run day to day business activities; for example, cash, debtors, stock, etc.

Tangible Assets− Assets that have physical existence, i.e., which can be seen and touched, are tangible assets; for example, car, furniture, building, etc.

Intangible Assets− Assets that cannot be seen or touched, i.e. those assets that do not have physical existence, are intangible assets; for example, goodwill, patents, trade mark, etc.

Liquid Assets− Assets that are kept either in cash or cash equivalents are regarded as liquid assets. These can be converted into cash in a very short period of time; for example, cash, bank, bills receivable,Flexible Investments etc.

Fictitious Assets− These are the heavy revenue expenditures, the benefit of whose can be derived in more than one year. They represent loss or expense that are written off over a period of time, for example, if Research and Development expenditure is Rs 1,00,000 for 5 years, then each year Rs 2,00,000 will be written off.

A n s w e r :
Full Disclosure principle
The following values are involved in the principle of Full Disclosure principle:

1. Transparency
2. Avoiding deliberate concealing of material facts

Ledger is the collection of different accounts of assets, liabilities, capital, revenue and expenses. When transactions are recorded in the Journal (Book of Original Entry), these are transferred or posted to their respective accounts in Ledgers. These are called Book of Secondary or Final Entry. Ledger contains all accounts of a business enterprise, irrespective of whether they are personal, real or nominal.

Accounting can be defined as a process of reporting, recording, interpreting and summarizing economic data. The introduction of accounting helps the decision-makers of a company to make effective choices, by providing information on the financial status of the business. Today, accounting is used by everyone and a good understanding of it is beneficial to all. Accountancy act as a language of finance. To understand accounting efficiently, it is important to understand the aspects of accounting.

• Economic Events- It is a consequence of a company has to undergo when the number of monetary transactions is involved. Such as purchasing new machinery, transportation, machine installation on-site, etc.
• Identification, Measurement, Recording, and Communication- The accounting system should be outlined in such a way that the right data is identified, measured, recorded and communicated to the right individual and at the right time.
• Organization-In refers to the size of activities and level of a business operation.
• Interested Users of Information- It is about communicating important financial information to the customers, according to which they will make the correct decision.

The accounting equation is the basic element of the balance sheet and the primary principle of accounting. It helps the company to prepare a balance sheet and see if the entire enterprise’s asset is equal to its liabilities and stockholder equity. It is the base of the double-entry accounting system.

Double-entry accounting is a system that ensures that accounting and transaction equation should be equal as it affects both sides. Any change in the asset account, there should be a change in related liability and stockholder’s equity account. While performing journal entries accounting equation should be kept in mind.

Each and every transaction has two effects. For example, if someone transacts a purchase of a drink from local store, he pays cash to the shopkeeper and in return, he gets a bottle of drink. This simple transaction has two effects from the perspective of both, the buyer and as well as the seller. The buyer's cash balance would decrease by the amount of cost of purchase while on the other hand he will acquire a bottle of drink. Conversely, the seller will be one drink short though his cash balance would increase by the price of drink.

The economic value of an obligation or debt that is payable by the enterprise to other establishment or individual is referred to liability. To put it in other words, liabilities are the obligations that are rising out of previous transactions, which is payable by the enterprise, through the assets possessed by the enterprise.

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position and cash flows.

• Non-Economic Transactions are the transactions that cannot be measured in terms of money, i.e. do not involve receipt or payment.
• It is a non-economic activity because no sale/exchange of goods or services or money is involved. Just the order is placed.