Category: Accounting

Small business was born more than 40 centuries ago in the eastern part of the Mediterranean. Although small business played a major role in the spread of civilization, its history has never occupied the public consciousness. But now small business is increasingly recognized as the creative force of the economy. Small business is at the center of the interests of modern society, affecting the lives of the entire population. Few sectors of the economy could function without its endless flow of products and services. And, most importantly, its activities initiate inventive and innovative activities: studies show that basic ideas and inventions are more often received from small than large enterprises. Creativity of small businesses will promote the distribution of new products and services to consumers. Of the 19 million US…

A high level committee was appointed by the Government of India under the Chairmanship of Shri M. Narasimham in August 1991 to examine all aspects relating to the structure organisation, functions and procedures of the financial system.The committee’s report was tabled in Parliament on December 17, 1991: The main recommendations of the committee are as follows: 1. Reduction in Liquidity Ratio: The committee recommended phased reduction in the Statutory Liquidity Ratio (SLR) to 25 percent over a period of five years. It also recommended the progressive reduction in Cash Reserve Ratio (CRR) from the present high level. Image Source: slideteam.net 2. Abolition of Directed Credit Programmes: ADVERTISEMENTS: The directed Credit programmes should be abolished gradually. The priority sector should be redefined. 3. Free Determination of Interest Rates: The rate of…

Where it- appears to the court to be just and convenient, the court may, by order, appoint a receiver of any property whether before or after decree; remove any person from the possession or custody of the property; and commit the same to the possession, custody or management of the receiver (Order XL, Rule 1).The appointment of a receiver is in the discretion of the court. That discretion has to be exercised not arbitrarily but cautiously, judicially and according to legal principles after a consideration of the circumstances of the case. The main object and purpose of his appointment is the preservation of the subject-matter of the litigation pending a judicial determination of the rights of the parties thereto.He is appointed for the protection of rights of the parties or…

The salient features of the Indian urbanization may be summarized as under:(1) The history of urbanization in India is quite old as towns and urban places flourished in the Indus Valley around 2500 B.C.(2) Urbanization in India during the ancient and medieval periods was associated with the seats of administrations, capitals and trading centers. ADVERTISEMENTS: (3) After the arrival of the Europeans in India, urbanization rate was accelerated mainly because of the location and establishment of modern factories and industries.(4) Urbanization in India during the present century was associated with a particular theme in each decade: 1901-1911 famine and plague; 1911-1921 influenza epidemic; 1921-1931 agricultural depression; 1931-1941 war; 1941-1951 partition of the subcontinent; 1951-1961 planned development; 1961-1971 emergence of new urban centers in backward areas and concentrated urban development near…

Important scopes of managerial economics are given below:1. Demand analysis and forecasting.2. Cost and production analysis. ADVERTISEMENTS: 3. Pricing decisions, policies and practice.4. Profit management.5. Capital management.6. Analysis of business environment. ADVERTISEMENTS: 7. Allied disciplines.Now we discuss these in detail: 1. Demand analysis: A business firm is an economic organization which is engaged in transforming productive resources into goods that are to be sold in the market. ADVERTISEMENTS: A major part of managerial decision-making depends on accurate estimates of demand. A forecast of future sales serves as a guide to management for preparing production schedules and employing resources.It will help management to maintain or strengthen its market position and profit-base. Demand analysis also identifies a number of other factors influencing the demand for a product. Demand analysis and forecasting occupies…

Managerial Economics has been described as economics applied to decision-making. It may be viewed as a special branch of Economics. However, the main points of differences are the following:1. The traditional Economics has both micro and macro aspects whereas Managerial Economics is essentially micro in character. ADVERTISEMENTS: 2. Economics is both positive and normative science but the Managerial Economics is essentially normative in nature.3. Economics deals mainly with the theoretical aspect only whereas Managerial Economics deals with the practical aspect. Image Source : c2.staticflickr.com4. Managerial Economics studies the activities of an individual firm or unit. Its analysis of problems is micro in nature, whereas Economics analyzes problems both from micro and macro point of views.5. Economics studies human behaviour on the basis of certain assumptions but these assumptions sometimes do…

Main wage legislations for protecting the rights of wage earners are given below:The government has enacted legislative measures to protect the wage earners’ rights and to emphasise managerial obligations in this regard. The basic foundation of industrial legislation is to ensure social justice. ADVERTISEMENTS: According to V.V. Giri, the basic foundation of industrial legislation is to ensure – “equitable distribution of profits and benefits accruing from industry between industrialists and workers and affording protection to the workers against harmful effects to their health, safety and morality”.Thus, the protection of labour in industry is the motive force behind labour legislation. Legislation only sets the minimum rates and obligations on the part of the employer. Image Source: mediad.publicbroadcasting.netNothing prevents more liberal terms being negotiated through collective bargaining processes.1. The Payment of Wages…

It is a bit difficult to give a precise definition of the work ‘audit’ in a word or two. Originally, its meaning and use were confined merely to a cash audit, i.e., an auditor had to ascertain whether the person responsible for the maintenance of accounts had properly accounted for all the cash receipts and payments on behalf of his principal. But the word ‘audit’ has a wide usage and it now means a thorough scrutiny of the books of accounts and its ultimate aim is to verify the financial position disclosed by the Balance Sheet and the Profit and Loss Account of a company. The following are some of the definitions of audit given by some writers: ADVERTISEMENTS: (1) Spicer and Pegler: “An audit may be said to be…

The Steps that should be Taken to Ensure Rapid Economic Development of Air Transport Industry are as follows: Steps 1. Financial Activities: The IATA Financial Committee deals with all aspects of the accounting, finance and settlement of dues between airlines and other members. The committee also deals with many of the common problems of the members in regard to currency, taxation, charges, insurance and statistics.Since its inception, IATA has been able to reconcile the financial and accounting systems developed independently in many parts of the world, before airlines were extensively linked by the intercontinental routes. Image Source: sagacityatlarge.files.wordpress.com ADVERTISEMENTS: It has constantly been putting profound efforts in the field of improving standard of accounting practices, cost, operating profit and loss statements and similar documents, to make possible the application of…

Export performances of principal commodities in India during April to November in 1998 are listed below: 1. Plantations: Plantation crops primarily comprise tea and coffee. Exports of plantation crops increased during April to November, 1998 by 31.8% in rupee terms. Exports of coffee increased by 15.3% during this period to Rs 1,225 crores from 1,062 crores during the same period of last year.Exports of tea increased from Rs 971 crores during April to November, 1997 to Rs 1,454 crores during April to November, 1998 registering a positive growth of 49.7%. Image Source: s-media-cache-ak0.pinimg.com 2. Agriculture and allied products: This group comprises a wide variety of agricultural products covering cereals, pulses, tobacco, spices, nuts and seeds, oil meals, guar gum meals, castor oil, shellac, sugar and molasses, processed food, meat and…