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ACCOUNTANCY Accountancy refers to systematic knowledge of accounting concerned with the principles and techniques which are applied in accounting. It tells us how to prepare the books of accounts, how to summarize the accounting information and how to communicate it to the interested users. ACCORDING TO KOHLER “Accountancy refers to the entire body of theory…
ARITHMETIC MEAN Arithmetic Mean is the number which is obtained by adding the values of all the items of a series and dividing the total by the number of items. It is also known as Average. It is an important and most commonly used measure of central tendency. ACCORDING TO HORACE SACRIST “The arithmetic mean…
MEANING Book-Keeping is an art and science of recording business transactions in a systematic and chronological order. It is a combination of two words: Book + Keeping which means to keep the books of accounts to record all the financial transactions. It is concerned with identification of transactions and events, expressing them in the monetary…
OBJECTIVES OF MANAGEMENT Objectives are the ends towards which the activities of an organisation are directed. Management is an art of getting things done through others with the aim of achieving all the set targets on time by incurring minimum cost. The main objective of management is to run the organisation smoothly. Following the Objectives…
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MEANING Management is a process of getting things done with the aim of achieving the goals effectively and efficiently. It consists of various inter-related functions such as planning, organizing, staffing, directing, coordinating and controlling for accomplishing the set targets of the organisation. ACCORDING TO MARY PARKER FOLLETT “Management is an art of getting things done…
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MEASURES OF CENTRAL TENDENCY IN STATISTICS Measures of Central Tendency are the expected values of the variable or is a value in a data around which the items of the data congregate. It represents the whole set of data. The Measures of Central Tendency is also known as an ‘Average’ or ‘Measures of Location.’ ACCORDING…
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NON- PROFIT ORGANISATION Non Profit Organisation is a kind of organisation which is set up to promote the social welfare, cultural, educational, professional or religious objectives. These organisations are formed not to earn profit but to render their services to the society for the upliftment of the various sections of the society. It is a…
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LIMITATIONS OF ACCOUNTING Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. But it suffers from drawbacks which hinders its utility. The Limitations of Accounting are as follows: INFLUENCED BY PERSONAL JUDGMENTS Accounting is viewed…
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WORKMEN COMPENSATION RESERVE TREATMENT ON DISSOLUTION Workmen Compensation Reserve is a reserve created out of firm’s profits to meet possible liability to pay compensation to employees, if it arises. It means, a claim may or may not arise. It also means that claim may be higher than amount of reserve. This Reserve represented by compensation…
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MEANING Realisation Account is a nominal account which is prepared at the time of dissolution of firm. It is prepared to find out the profit or loss realized by the firm on its closing or shutting down. Being a nominal account, it is credited with all the incomes and debited with all the expenses. Firstly,…
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