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CAPITAL EXPENDITURE The expenditure incurred by the business enterprise for the purchase of fixed assets or to repay the loan is known as Capital Expenditure. This is the expenditure, the benefit of which accrues to the firm for the long time. This expenditure is also done to increase the capacity, efficiency, life span or economy…
EXCEPTIONS OF LAW OF DEMAND 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…
LAW OF DEMAND Law of demand explains the relationship between price of the commodity and its demand. The law states that there is inverse or negative relationship between the demand and price of the commodity, ceteris paribus i.e. other things being constant. It means if the price of the commodity increases, the demand for commodity…
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…
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…
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…
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…
