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Cash Flow Statement and Its Dynamics
Meaning of Cash Flow Statement Financial statements like Profit and Loss Account, Balance Sheet and Shareholder’s Equity Account cannot answer the questions regarding the cash of a company. A company in operation generates cash from different sources and uses it for different activities. Such details of sources and uses of cash in an organization are…
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Inflation – A Precise Note on It
Meaning of Inflation Inflation is an economic indicator that indicates the rate of rising prices of goods and services in the economy. Ultimately it shows the decrease in the buying power of the rupee. It is measured as a percentage. This percentage indicates the increase or decrease from the previous period. Inflation can be a…
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Balance Sheet: Things to Know About It
Balance Sheet A balance sheet is a statement, not an account, prepared to show the financial position of a company at a point of time. It is a statement showing the status of capital, liabilities and assets of a company. It is called a Balance Sheet as it balances out the equational relationship of Assets…
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Profit and Loss (P/L) Account – A Precise View
Concept of P/L Account Profit and Loss Account is a financial statement prepared after the preparation of the Trading Account. SO, this can be regarded as the second step in the preparation of a financial statement. The profit and loss account is prepared by adding all the indirect incomes to Gross Profit or Gross Loss…
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Trial Balance and Its Accounting Aspects
Concept of Trial Balance Before learning about trial balance, we have to recall the concept of Journal and Ledger. Journal is the book of primary entry recording the debit and credit aspects of a transaction identifying the respective impacted account. Ledger is the next step after the preparation of the journal. Ledger is the classified…
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Petty Cash Fund and Its Recording
Different expenses have to be incurred by an office. Most of such expenses are paid through cheque. But some small amount expenses cannot be paid by cheque. This includes expenses like postage, taxi fare, envelopes, tea for guests etc. These expenses have a very small amount and cannot be paid by issuing a cheque. To…
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Management Ethics : An Overview of It
What does Management Ethics Mean? Ethics refers to the philosophy that defines what is right and what is wrong. It is an idea about what is good and what is badly expressed in the behaviour of an individual. It is a moral obligation and set of rules that define the right and wrong conduct of…
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Control : Concept, Characteristics, Process and Importance
Concept of Control Any organization makes a plan and implements it to achieve pre-determined goals or objectives. Different activities are to be performed as per such plan to attain the desired target. Thus, to keep such activities on track to achieve goals or objectives, a function is performed in management which is called control. Control…
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Government Budget and Its Different Aspects
Meaning of Government Budget A government has to perform different responsibilities. These responsibilities are related to public welfare and the general administration of government activities. The government needs financial sources to perform such tasks, duties and responsibilities. The financial sources of the government mean government income from different sources and its spending for different purposes.…
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Supervision and Monitoring : Understanding Them A Bit Better
Meaning of Supervision Supervision is the process by which the performance of subordinates is observed by the superior to ensure the work goes according to the plan. It is the act of looking at or overseeing or observation of the performance of employees by the superior individual or team. It is timely, direct and immediate…