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SCOPE OF ACCOUNTING The scope of accounting is wide and extends in business, trade, government, financial institutions, individuals and families and every other avenues. ACCORDING TO RJ BULL The scope is as follows: The above diagram makes it clear that accounting data is prepared and processed by using various methods of accounts. In a later…
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DEMAND FUNCTION OR FACTORS AFFECTING DEMAND OR DETERMINANTS OF DEMAND Demand function expresses the functional relationship between demand of the commodity and various factors affecting it. In other words, demand function describes the relationship between quantities of the commodity which consumers demand during a specified period and the factor which influence the demand. It is…
MEANING Demand is that specific quantity of a commodity which the consumer purchases at a specific price during a specified time period. ACCORDING TO FERGUSON “Demand refers to the quantities of commodity that the consumers are able and willing to purchase at each possible price during a period of time, other things being equal.” ACCORDING…
ACCOUNTING CONVENTIONS Accounting conventions are the guidelines based upon custom or usage or general agreement. The accounting conventions are used while maintaining the financial statements by the common consent of the accountants. In the adoption of accounting conventions, the personal judgment plays an important role. There is some kind of logic behind the usage of…
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MEANING Mode is a positional measure of central tendency. It is that value which occurs most frequently in any distribution. That means the items which are repeated a maximum time in the given distribution is known as mode. It is generally denoted by ‘Z’. ACCORDING TO CROXTON AND COWDEN “The mode of a distribution is…
ACCOUNTING CONCEPTS 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 accounting concepts help in conveying the financial information in a same meaning to the various users of the accounting. By following the…
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RECEIPTS AND PAYMENTS ACCOUNT Receipts and Payments Account records all the cash receipts and cash payments of non-profit organisations. It is a real account. It is prepared at the end of the year and records all the transactions whether it belongs to current, future or past years. All the capital and revenue nature items are…
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MEANING Principles are the general guidelines to action. Principles provide a base for performing some kind of task or action. Accounting Principles are the base as per which the books of accounts are maintained as well as accounting process is performed. ACCORDING TO AICPA “A general law or rule adopted or professed as a guide…
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MANAGEMENT AS A SCIENCE Science is a systematic and scientific body of knowledge which has some universally applicable laws. The theories or laws are originated after a continuous observation and experimentation capable of verification. Management as a science possesses the features of the science which are as follows: SYSTEMATISED BODY OF KNOWLEDGE: Management is viewed…
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MANAGEMENT IS AN ART Management is an art if it qualifies all the attributes of the art. An art is regarded as systematic application of skill or knowledge in achievement of goals. Art presents the methods and ways of doing things or tasks. It is a personalized process and based on the practice over a…
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