The American Institute of Certified Public Accountants(AICPA) defines accounting as an art of recording, classifying, and summarising the transactions and events that are in monetary terms efficiently and effectively and interpreting the results. The main aim of the accounting process is the ascertainment of an organization’s operation’s net results and financial position so that the firm can communicate the same with the interest parties or users of Accounting Information. The nature of Accounting is dynamic and analytical and hence, requires special abilities and skills in an individual to interpret the information better and effectively....
The word mode comes from the Latin word ‘Modus’, meaning measurements, quantity, way, or manner. In statistics, Mode refers to the variable that occurs most of the time or repeats itself most frequently in a given series of variables (say X). It is a maximum occurrence at a particular point or a value, and one of the three measures of central tendency in statistics that aims to analyze and examine data given in categories like the colour of cars, design of handbags, etc. The mode can be determined in two series, viz., individual series and discrete series. It is denoted as ‘Z’....
International Monetary Fund came into existence on 27th December 1945 and has its headquarters located in Washington DC, United States. It has 190 countries as its members as of December 2022. Its board is constituted of members from as many as more than 180 countries worldwide, thus each representing its own nation. Such representation is congruent to the level of importance a particular nation holds as regards to its financial position in the world....
Cost refers to the total expenditure made on inputs or resources that are used for the production of final goods or services. The resources used by a firm are limited in nature and thus require efficient allocation to maximise the firm’s profit. The cost or economic cost of a firm consists of all the expenses it faces, can manage, and are beyond its control....
Small-scale industries, often referred to as Small and Medium Enterprises (SMEs), are businesses characterized by their relatively modest size and operational scale. These enterprises typically operate on a more localized or regional level, focusing on producing goods or providing services on a smaller scale compared to large corporations. Small-scale industries play a vital role in fostering economic development, as they contribute significantly to employment generation, economic diversification, and fostering entrepreneurship. These businesses are often characterized by their flexibility, adaptability, and close community ties. Common examples of small-scale industries include family-owned businesses, local manufacturing units, and service providers catering to specific community needs. Governments often support and promote the growth of small-scale industries as they contribute to overall economic resilience and inclusivity....
A subsidiary is a corporation that is controlled or owned by another. The controlling company is referred to as the parent company, while the subsidiary is referred to as the daughter company. A corporation or a limited liability company can be established. It might also be owned by the government or the state....
In a business, there are numerous transactions that take place on regular basis, these can be the purchase and sale of goods and services, receiving or paying cash, and many more. Transaction basically refers to any monetary activity that affects the financial statements and is documented as an entry in the books of accounts. It involves any kind of exchange involving money, goods, or services. But for every financial transaction taking place in business, there should be valid documentary evidence that supports each transaction. This documentary evidence supporting transactions is known as ‘Source documents’. Common examples of source documents are cash receipts, cheques, pay-in-slip, invoices, etc....
Quartile Deviation (absolute measure) divides the distribution into multiple quarters. Quartile Deviation is calculated as the average of the difference of the upper quartile (Q3) and the lower quartile (Q1)....
We are a part of a fast-paced economy. Numerous changes in the size of the population, output, money supply, income, and price of commodities are taking place continuously in an ever-changing environment. Economic changes have their effects on the volume of economic activity, income and employment, general price level, and other factors. Most people are interested in learning how much their values have changed over time and how they have changed, and most values evolve. The index number helps in studying changes in consumption, production, imports, exports, cost of living, crimes, accidents, national income, business failures, and other phenomena....
Financial Institutions refer to a business establishment that serves as a link between the savers and investors and helps them to channelize the funds into different investing options. Financial Institutions are the financial intermediaries that accept deposits from the general public (their savings) and allocate these savings in a variety of investment channels for the benefit of both the public and the organization....
Licensing is a contractual agreement in which one company provides another company in foreign country access to its patents, trade secrets, or technology in exchange for a fee known as a royalty. The firm that grants such authorization to the other firm is known as the licensor, and the firm in the foreign nation that receives such rights to use technology or patents is known as the licensee....
The word mode is derived from the French word ‘La Mode’, meaning anything that is in fashion or vogue. A measure of central tendency in statistical series that determines the value occurring most frequently in the given series is known as mode. In other words, the modal value of the series has the highest frequency in the given series....
