Parties to a bill of exchange are Drawer, Drawee and Payee.

When capital is increased by an amount, it is recorded on Right or credit side of account.

Tax & freight paid on sale is a selling expense. Selling expense (or sales expense) includes any costs incurred by sales department.

Credit is nature of Capital account. Asset accounts normally have debit balances, while liabilities and capital normally have credit balances.

Salaries of selling staff would NOT be considered as a component of 'cost' of stock. When investors purchase shares of stock, price paid includes two components: price of stock and fee charged by brokerage firm, called commission.

General office expenses are charged to Administrative expenses head because we know that all types of official expenses are known as administrative expense.

Provision for doubtful debts account is an Contra asset account. It is used along with account Accounts Receivable in order for balance sheet to report net realizable value of company's accounts receivable.

Authorized share capital is also known as Registered capital. The authorized capital of a company is maximum amount of share capital that company is authorized by its constitutional documents to issue to shareholders.

Patents are fixed assets. The accounting process for patents is similar to or fixed assets. Companies allocate or amortize costs over life of patent.

LIFO inventory costing methods is supposed to issue most recently purchased goods. LIFO, which stands for last-in-first-out, is an inventory valuation method which assumes that last items placed in inventory are first sold during an accounting year.