Definition: The procedure of revising mistakes is known as “Rectification of Errors”. These errors can be of two types. First, the errors committed on both side in an entry which does not influence the trial balance and can be rectified by making a journal entry. And another one is the errors that occur one side of trial balance and disturbs the trial balance are known as … [Read more...] about Rectification of Errors
Sole Proprietorship Vs Partnership
Sole Proprietorship is the most accessible form of business that is solely or individually handled by one person called "proprietor," subject to minimal regulation. However, Partnership is a type of business in which atleast two persons are required to become a partner by signing a contract that explains all the partners' duties, responsibilities, and rights. In the Sole … [Read more...] about Sole Proprietorship Vs Partnership
Audit Evidence
Definition: Audit Evidence as per (SA-500) mentions the data or facts based on which the auditor reaches to a conclusion whether the financial statement of the company displaying the true and fair value or not, during which the auditor discovers various affirmations of the administration to express his point of view on these affirmations. The auditor needs to evaluate such … [Read more...] about Audit Evidence
Supply Curve
Definition: Supply Curve’s shape is driven by the cost behaviour, and the cost behaviour is persistent to the uncertain trend of prices in the input market. If the company manufacture more products, it leads to a high cost per unit, and then the company shows the explicit relation amidst the price and the supply and depicts the high inclined supply curve. For understanding … [Read more...] about Supply Curve
Income Statement
Definition: Income Statement provides a significant outlook on business health and its profitability, it is nothing but a profit and loss statement of the company showing all the expenses and incomes incurred during the year to get the net profit/ loss, although it won’t show the whole picture of the financial health of a company. The report on the assets, liabilities and … [Read more...] about Income Statement
Money Market
Definition: Money Market acts as an essential part of economic development. It is concerned with that portion of the financial system where trading of the short-term fund is done for a period of less than 1 year. Money Market is a product of the capital market, which is treated as a channel of short-term debt capital. Although it is undoubtedly distant from the capital … [Read more...] about Money Market
Target Marketing
Definition: Target Marketing is a technique which helps learners or the firms to learn how to make decisions regarding markets from the various market in which market they need to enter, and it depends upon feasible resources and experience of the dealer, which market has to be chosen for market targets. By way of assessment and study of the market, the firms get to know … [Read more...] about Target Marketing
Double Entry System
Definition: Double Entry System of accounting by its name describes that every transaction will once be debited and once credited. This system is followed by individuals and institutions for making entries of their day to day business transactions, whether receiving and sacrificing benefits. For instance: Mr. A makes some payment to Mr. B, in this transaction Mr. B is a … [Read more...] about Double Entry System
Reserves Vs Provisions
Reserves Vs Provisions: Reserves are the portion of the earning of the business which the company retains to meet any forthcoming emergencies or contingencies. In contrast, provisions are an indictment against income and are treated as expenses and entered in profit and loss account. Reserves lists beneath “reserves and surplus” head whether they are capital reserves or revenue … [Read more...] about Reserves Vs Provisions
Oligopoly
Definition: Oligopoly is a terminology defining the market structure in which some merchants are selling similar or diversified commodities. In case when the company sells the same product, it is known as “pure oligopoly” —for example; industries producing petrol, steel, etc. However, when the company of an oligopolistic industry sells a diversified product, it is known as … [Read more...] about Oligopoly