Definition: Outsourcing implies getting work done from the outside bodies. The companies generally use this process to deploy the non-core but relevant sector of their business. For this, two companies draft a legal agreement for the exchange of payments and services. For an action to be called ‘outsourced’ it should be: A recurring action. An action that the firm … [Read more...] about Outsourcing
Strategic Management
Definition: Strategic Management is understanding the management's aim and making a strategy to accomplish such aims by efficiently utilizing an organization's resources. It is mainly concerned with describing the management about its environment, developing strategies to comply with that environment and assuming that the application of strategies takes place. In short, it … [Read more...] about Strategic Management
Auditor
Definition: An auditor is a body who organizes an audit process. He is the one who creates an audit report after due examination of accounting records and accounting statements of the company forming his impression/assumption regarding financial statements fairness and reliability. Content: Auditor Qualification of an Auditor Qualities of an Auditor Responsibilities … [Read more...] about Auditor
Shares
Definition: Shares are the smallest unit of the company's capital or can be said as a unit of equity. The holder of such shares in a company is known as "Shareholders" (the owners of the company). These shares can be issued to the public for raising the funds of the company for its expansion. The market used for trading of shares is known as “Share Market” which deals in … [Read more...] about Shares
Bank Reconciliation Statement
Definition: Bank reconciliation statement is a statement made by a firm to obtain the balance of the passbook through the balance of cash book by making certain adjustments or finding the balance of the cash book by taking the balance of passbook on a precise date. It is prepared to understand the precise position of the transactions and to make sure that no blunder has … [Read more...] about Bank Reconciliation Statement
Gross Domestic Product (GDP)
Definition: Gross Domestic Product (GDP) is the total market value of the services and final goods formed within a nation's boundaries in a financial year. It is used to measure the comprehensive achievement of an economy. The nations' GDP growth is calculated with an increase in the GDP from the previous year to the current year, which can be calculated yearly or … [Read more...] about Gross Domestic Product (GDP)
Non-profit organization
Definition: Non-profit organization are established to provide aid to society, such as developing charity, commerce and religion. However, it has a separate legal entity other than its members, and their primary objective is to provide services without the intention of earning profits in return like trading organizations. The main source of earning for such organizations are … [Read more...] about Non-profit organization
Vouching
Definition: Vouching is a procedure followed in the process of the audit to authorise the credibility of the entries entered in the books of accounts. In simple and easier words, it is a precise investigation of the presented documents of the firm by an auditor to check the correctness and accuracy of such documents. It is the foremost step of the auditing process based on … [Read more...] about Vouching
Ledger
Definition: A ledger is the second step of preparing the financial books of accounts just after posting the journal entries. It is prepared for posting and balancing monetary transactions in a summarized form that arises in the business during the financial year. Separate ledger accounts are prepared to identify the dues and payments of the parties individually at the end of … [Read more...] about Ledger
Lease
Definition: A lease is a legal agreement amongst two parties known as lessor (owner) and a lessee (occupant). Lessor grants a temporary possession to the lessee to use his/her property or asset such as land and building against some monetary compensation for a certain period as mentioned in an agreement of lease. Lease facility is generally used by the entities who want an … [Read more...] about Lease