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The Investors Book

Learn about Investing & Business related terms

Performance Appraisal

September 24, 2020 by Anjali J Leave a Comment

Definition: Performance appraisal is a process of evaluating the employee’s performance in a workplace covering all qualitative and quantitative aspects of the job. It can be considered as an efficient method of evaluating personnel’s capabilities and their work-related conduct to assess his/her future growth possibilities. It also builds an effective communication channel … [Read more...] about Performance Appraisal

Rectification of Errors

September 18, 2020 by Anjali J Leave a Comment

Definition: Rectification of errors is a procedure of revising mistakes in the entries. These errors can be of two types, i.e,  the errors committed on both sides in an entry that does not influence the trial balance and can be rectified by making a journal entry. And another one is the errors that occur on one side of the trial balance and disturbs the trial balance are … [Read more...] about Rectification of Errors

Sole Proprietorship Vs Partnership

September 14, 2020 by Anjali J Leave a Comment

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, the Partnership is a type of business in which at least two persons are required to become a partner by signing a contract that explains all the partners' duties, responsibilities, and rights. In the … [Read more...] about Sole Proprietorship Vs Partnership

Audit Evidence

September 9, 2020 by Anjali J Leave a Comment

Definition: As per (SA-500), audit evidence mentions the data or facts based on which the auditor reaches 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 so … [Read more...] about Audit Evidence

Supply Curve

September 3, 2020 by Anjali J Leave a Comment

Definition: Supply Curve represents a pictorial depiction of the price and quantity relation of the commodities. Its shape is driven by cost behaviour, and the cost behaviour is constant 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 … [Read more...] about Supply Curve

Income Statement

August 26, 2020 by Anjali J Leave a Comment

Definition: Income Statement provides a significant outlook on business health and its profitability. It communicates information on producing and selling actions of a business over an extent of time. However, it won’t show the whole picture of the financial health of a company, the report on the assets, liabilities and equity of the company is shown in its balance sheet, and … [Read more...] about Income Statement

Money Market

August 21, 2020 by Anjali J Leave a Comment

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. It 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 market, money … [Read more...] about Money Market

Target Marketing

August 14, 2020 by Anjali J Leave a Comment

Definition: Target Marketing is a technique which helps students or the firms to learn how to make decisions regarding the various market in which they need to enter. It depends upon feasible resources and experience of the dealer; which market has to be choosen for market targets. By way of assessment and study of the market, the firms get to know about their business … [Read more...] about Target Marketing

Double Entry System

August 11, 2020 by Anjali J Leave a Comment

Definition: Double Entry System is one of the accounting method in which every transaction has a dual effect, i.e., every debit transaction will have an equivalent credit transaction. This system is followed by individuals and institutions for passing journal entries of their day to day business transactions, whether receiving and sacrificing benefits. For instance, Mr. A … [Read more...] about Double Entry System

Reserves Vs Provisions

August 7, 2020 by Anjali J Leave a Comment

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 the charge against income and are treated as expenses and entered into a profit and loss account. Reserves lists beneath “reserves and surplus” head whether they are capital reserves or revenue … [Read more...] about Reserves Vs Provisions

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