Definition: Endorsement comes under Negotiable Instrument Act, 1881. It is a process of affirming the negotiable instrument signed by the drawer (the endorser) for the reason of negotiation, and the receiver of the instrument is known as a drawer (endorsee). The instrument must be signed by the drawer either in front or backside, and if there is no remaining space in front … [Read more...] about Endorsement
Arbitration
Definition: Arbitration is a procedure of making a decision by an outsider for a dispute settlement amidst two parties. In this process, the arbitrator makes an impartial decision which will become mandatory for both parties to follow. Here, the arbitrator is an individual appointed to resolve the disputes and differences of two parties. The arbitrator makes his decision on … [Read more...] about Arbitration
Fixed Cost
Definition: Fixed cost is one of the two components of the total cost of goods and services along with the variable cost. These costs are applicable to all businesses doing any kind of business. It is a cost that does not change with an increase or decrease in the number of goods and services produced. In economics, a business can achieve economies of scale when it produces … [Read more...] about Fixed Cost
Business Cycle
Definition: Business Cycle is the fluctuations that are more or less regular in time sequence. The level of economic activity goes through periodic volatility from time to time. These frequent fluctuations manifest themselves in changing employment investment, national income, etc. Business Cycle is also termed as Trade Cycle, which displays the ebbs and flows of the … [Read more...] about Business Cycle
Marketing Audit
Definition: Marketing Audit is an overall analysis of company’s marketing strategies and objectives in a systematic manner so as to find out the problematic areas and opportunities and urging a plan to improvise the company’s marketing performance. It is essential as it analyzes the external and internal situations. It is also going to analyze the past performance and the … [Read more...] about Marketing Audit
Performance Appraisal
Definition: Performance Appraisal is a technique of assessing employees conduct in a workplace covering job performance’s qualitative and quantitative aspects; thus, it can be considered as an efficient method of calculating personnel’s capabilities and their work-related conduct. Performance Appraisal can alternatively be said as a method that ascertains and conveys to the … [Read more...] about Performance Appraisal
Rectification of Errors
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