What is meant by management Accounting? Explain the advantages and limitations of Management Accounting. Meaning:- Management Accounting is the Identification, Accumulation, Measurement, Analysis, Preparation, Interpretation and Communication of information that helps Managers in fulfilling organisation goals. Management Accounting is a source of information which supplies the right information to the right person at the right …
Meaning of Trading Account:- Trading account deals with the terms of trading. In which it considered Selling or purchasing of business. As it reflects the Expenses and Revenue of business. It is created to know the Gross profit and Gross loss of business. This is a trading account format. Which account is prepared by Trading …
Discuss important concepts of accounting. Meaning:- Accounting concepts are the fundamental assumptions which are followed in the accounting way. Assumption is that which is accepted true without proof. It is treated as a true opinion which does not need any proof. These are logical assumptions and widely accepted. In other words:- These are accepted rules …
Meaning of Financial Accounting:- Financial accounting is concerned with recording, classifying, and summarising financial transactions of a business for an accounting period. Let’s know by definition what is financial accounting. This is done for the purpose of determining profit and loss of the business and its financial position. Definition According to Smith:- Financial Accounting is …
what is financial accounting? And its Nature and limitations Read More »
What is financial accounting? Explain its objectives and limitations. Meaning of Financial Accounting:- Financial accounting is concerned with recording, classifying, and summarising financial transactions of a business for an accounting period. This is done for the purpose of determining profit and loss of the business and its financial position. Definition According to Smith:- Financial Account …
What is the production function? Explain the law of Returns to Scale. Explain the reasons for returning to scale. Production Function:- Production Function refers to the relationship between the quantity of goods produced ( Output ) and the factor of production ( Inputs ) necessary to produce it. These are the main factors of production …
Explain in detail the Law of Variable Proportions. Give its causes Ans:- Meaning of law of variable:- Law of variable proportions Refers to “When one factor is increased while other factors of production are constant then total output will increase”. Definition of law of variable proportions:- According to leftwich “The law of variable proportions states …
Elaborate upon the meaning and features of monopolistic competition. How is the output and price determination under monopolistic competition? Ans:- Meaning of Monopolistic – It is that market where there are a large number of buyers and sellers. Who sells different products for the purpose of control over price and facilitating the increase in market …
price determination under monopolistic competition Read More »
How is the price and output of a firm and industry determined under perfect competition? Ans:- Meaning of perfect competition:- Perfect competition is that market where there are a large number of buyers and large numbers of sellers available to sell and purchase homogeneous products. In other words:- It is a location where homogeneous products …
What is the definition of national income? Explain the different methods for the measuring of National income or gross product. Ans. Meaning of national income:- National income refers to the income earned by normal residents of a nation during a given period as a result of their productive services. It’s known as a national product. …