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ACCOUNTING STANDARDS Accounting standards may be defined as written statements, issued from time to time by institutions of accounting professionals, specifying uniform rules or practices for drawing the financial statements. ACCORDING TO KOHLER “Accounting standards are code of conduct imposed on accountants by custom, law or professional body.” Accounting standards mainly deal with four major…
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MEANING Price Elasticity of demand is the rate at which quantity purchased changes with the change in price. It is the ratio of percentage change in quantity demanded to percentage change in the price of the commodity, other factors remaining the same. Ed= (-) Percentage change in quantity demanded/ Percentage change in price ACCORDING TO…
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TYPES OF COMPANIES Company is an artificial person created by the law for some common purpose where the capital is divisible into parts known as shares with perpetual succession and common seal. The various types of companies are as follows: ON THE BASIS OF FORMATION On the basis of formation, the companies are of following…
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Difference between Accounting Concepts and conventions Before understanding the Difference between Accounting Concepts and Conventions, the both concepts should be known. ACCOUNTING CONCEPTS The Accounting Concepts are the foundation of the accounting. These concepts are the assumptions which are generally accepted and followed while performing the recording of transactions and preparation of final accounts. The…
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Difference between capital and revenue receipt Before understanding the Difference between Capital and Revenue Receipt, the concept of capital receipt and revenue receipt must be known: CAPITAL RECEIPT Capital receipt is the amount received by the enterprise which is not revenue in nature and leads to an overall increase in the total capital of the…
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REVENUE RECEIPT Revenue receipt is the amount received by the business as a result of its core business activity. It leads to increase in the overall revenue of the business. These receipts refers to the sale proceeds of merchandise or fees received for services rendered, discount received, commission received, interest received, discount received on shares….
MEANING Capital receipt is the amount received by the enterprise which is not revenue in nature and leads to an overall increase in the total capital or equity of the company. These generate out of the non-operating activities. It means these receipts do not arise out of the normal course of business. FEATURES OF CAPITAL…
CHANGE IN DEMAND Change in demand which is also known as variations in demand means the change in the quantity demanded of the commodity due to the various factors like price of own commodity, price of related goods, income of consumer, taxation policy of government, tastes and preferences of the consumers etc. Change in Demand…
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DEFERRED REVENUE EXPENDITURE Deferred Revenue Expenditure is the expenditure which is revenue in nature but the benefit of which is likely to be derived over a number of years. The benefit of these expenditures generally last from 3-7 years. That is why the full amount of deferred revenue expenditure is not debited to Profit and…
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MEANING Elasticity of Demand measures the extent to which quantity demanded of a commodity increases or decreases in response to increase or decrease in its price, the price of related goods or a change in the income of consumer. ACCORDING TO PROF. DOOLEY “The elasticity of demand measures the responsiveness of quantity demanded of a…
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