Definition: The Cash Flow Statement serves the shift of the cash by the company, i.e., accepting cash on the one side and making payments by cash on the other side. Its ambition is to determine the difference between the cash-in-hand the company has at the beginning and at the end of the year. A specified protocol of divergent stock exchanges demands corporate entities to … [Read more...] about Cash Flow Statement
Inflation
Definition: Inflation implies acceleration in the universal price level or moderate level of prices, of all services and goods. When the general price level continues to rise over a long time, it is known as “Sustained Inflation”. In microeconomics, the price of goods is determined when the demand is equal to its supply. Precisely, any factor that either reduces supply or … [Read more...] about Inflation
Internal Audit
Definition: Internal Audit indicates an independent assessment of activities inside an organization for the inspection of financial, accounting and other, day- to- day business practices. It subsists of steady and crucial review of operating and financial activities by management and reporting to it and not to stakeholders. Content: Internal Audit Procedure … [Read more...] about Internal Audit
Outsourcing
Definition: Outsourcing implies negotiating out a business operation or activity to an external body. For this, two companies draft a legal agreement for the swap of payments and services. For an action to be called ‘outsourced’ it should be: A recurring action. An action that the firm presently furnishes for itself or is commonly scheduled to implement for … [Read more...] about Outsourcing
Strategic Management
Definition: Strategic Management can be defined as the recognition of the aspiration of the institution and the procedure and activities to accomplish that aspiration or aim. It is mainly concerned with describing the management to its environment, developing strategies to comply with that environment and assuming that the application of strategies takes place. Content: … [Read more...] about Strategic Management
Auditor
Definition: The body which organizes auditing is termed as an auditor. He is the one who performs reports after due examination of accounting records and accounting statements, and he will be forming an impression/assumption regarding financial statements and will be reflecting a true and fair view of records. According to the Companies Act, 2013, only chartered accountant … [Read more...] about Auditor
Shares
Definition: Shares implies stake in the company’s capital, which also comprises of stock excluding where a difference among stock and share is disclosed or hidden. Shares are the smallest unit of the company's capital, and the holder of such stocks are known as shareholders (the owners of the company). Content: Shares Kinds of shares Features of shares Difference … [Read more...] about Shares
Bank Reconciliation Statement
Definition: Bank Reconciliation Statement is inclined to acquire the balance of the passbook through the balance of cash book or to find the balance of the cash book by taking the balance of passbook on a precise date. The lag does not commonly matter as early or afterwards, the client and bank both will make the entries. However, to understand the precise position and to … [Read more...] about Bank Reconciliation Statement
Gross Domestic Product (GDP)
Definition: The total market value of the services and final goods formed within a nation’s boundaries in a financial year is known as a Gross Domestic Product (GDP). Gross Domestic Product is used to measure the comprehensive achievement of an economy. Content: Gross Domestic Product (GDP) Factors of Gross Domestic Product Ways to calculate Gross Domestic Product … [Read more...] about Gross Domestic Product (GDP)
Non-profit organization
Definition: Non-profit organization are established to provide aid to society. They are entrenched to develop charity, commerce, religion, or any other fruitful objects. Their main objective is to provide services without the intention of earning profits in return, like trading organizations. Content: Non-profit organization Types of accounts Formats Features of … [Read more...] about Non-profit organization