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
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
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
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
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
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
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
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
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
Oligopoly
Definition: Oligopoly is defined as a market structure in which some sellers are selling similar or diversified products. 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 “heterogeneous … [Read more...] about Oligopoly