Found 212 Articles for Economics

Gaining Ratio

Bitopi Kaashyap
Updated on 16-Jan-2023 18:18:50
What is Gaining Ratio? Gaining ratio is a term related to partnership firms. When a partner of a partnership firm retires, the remaining partners need to form a new partnership with a new partnership ratio. This new ratio is applied in distributing the profits and losses to the remaining partners. In financial and economic terms, the new partnerships ratio is called the gaining ratio. With the formation of the gaining ratio, the existing ratio of the partnership comes to an end, and a new partnership is formed. The continuing partners of the firm follow this new ratio to get the ... Read More

Fixed Cost Vs Variable Cost

Bitopi Kaashyap
Updated on 16-Jan-2023 18:12:33
Introduction Every company incurs costs during its operations. It is impossible to think about a company with no cost. The companies therefore must be aware of the costs because the unnecessary costs may harm the financials absurdly. Saving funds by managing costs efficiently goes a long way in making a company profitable. That is why knowing more about costs is important for everyone. A company usually makes two types of costs depending on the nature of change along with the production volumes of the company. These two types of costs are − Fixed Costs Variable Costs. ... Read More

Fixed Assets Vs Current Assets

Bitopi Kaashyap
Updated on 16-Jan-2023 18:07:06
Introduction Usually, organizations have different types of assets. They may include property, plants, inventories, etc. The assets may have different natures and their properties may be different too. According to analysts, there is one fundamental difference among the assets depending on which the assets can be divided into two sections − Fixed Assets and Current Assets. The difference lies in the assets’ ability to get converted into cash. What is are Fixed Assets? Termed also as Property, Plant, and Equipment (PP& E) and as capital assets, fixed assets are tangible things of a company that can be ... Read More

Fiscal Deficit

Bitopi Kaashyap
Updated on 16-Jan-2023 18:00:54
Introduction Governments have both earning and spending as their responsibilities. Therefore, they earn revenues and spend money on public projects, such as infrastructure, education, and public health. There are two possible results of this − The government may either have a surplus or A deficit in the budget. Surplus refers to the extra revenue left while deficit refers to the loss of the government in terms of fiscal balance. What is the Fiscal Budget? The fiscal budget of a government is calculated by the revenues earned by the government by comparing it with the expenditure. When the ... Read More

Dissolution Of Partnership Firm

Bitopi Kaashyap
Updated on 16-Jan-2023 17:54:23
What is meant by Dissolution of Partnership Firm? Dissolving a partnership firm legally means stopping the business under the name of the said partnership firm. In such a case, all liabilities are ultimately settled by selling off assets. Assets may be transferred to a particular partner, which settles all accounts that existed with the partnership firm. Transfer of any profit/ loss to partners takes place according to their profit-sharing ratio which is agreed by them in the partnership deed. Dissolving a partnership firm is different from dissolving a partnership. In the case of dissolving a partnership firm, the firm ends ... Read More

Dissolution Of A Firm

Bitopi Kaashyap
Updated on 16-Jan-2023 17:43:07
Introduction When the relationship between all the partners of the firm is terminated then it is called the dissolution of the firm. After the dissolution of the partnership firm, the firm won’t exist anymore. This dissolution process includes disposing and discarding of all the assets of the firm and/or settlements of accounts, assets, and liabilities. What is Dissolution of Partnership Firm? Dissolution of a firm or a partnership firm is a procedure in which the professional relationship between numerous partners of a firm is removed or terminated. After the dissolution of a partnership firm, a change takes place in ... Read More

Limitations Of Financial Statements

Bitopi Kaashyap
Updated on 16-Jan-2023 17:05:39
Introduction Although often not mentioned, the financial statements of a company are the backbone of success. By keeping records of the company’s financial conditions, the accountants not only save the financial mechanism a company follows but also find out whether the company is profitable and working in the right direction. Therefore, financial statements are an indispensable part of the business. Financial statements are prepared by following a certain mechanism and the mechanism is based on appropriate business-oriented tools that help businesses become profitable and perform well enough. Therefore, these financial statements are considered to be unavoidable by businesses. Limitations ... Read More

Limitations Of Financial Analysis

Bitopi Kaashyap
Updated on 16-Jan-2023 16:56:51
Introduction Financial analysis is also considered to be a helpful tool to correctly analyze the condition of the business by many analysts. Since financial analysis is performed according to set mathematical standards, many analysts argue that it helps to minimize human errors to a large extent. Financial analysis is also dependent on information that is collected from accounting books. So, many analysts believe that it represents true outcomes that may have occurred even if the business policies were followed without actually performing business. Hence, the real outcomes of virtual policies can be obtained from financial analysis. Meaning of Financial ... Read More

Large Scale Industries

Bitopi Kaashyap
Updated on 16-Jan-2023 16:40:07
What is meant by Industries? Businesses can range from sole proprietor enterprise to big corporation that employs thousands of workers across multiple countries. Depending on the scale of business, organizations can be classified as micro-enterprises, small-scale enterprises, large-scale industries, public enterprises, and multinational corporations. There are a number of business organizations that form industries depending on their products, forms of manpower, capital requirements, etc. Therefore, there are small-scale industries, medium-range industries, large-scale industries, and multinational corporations available as forms of business worldwide. Industries are referred to as part of the economy that helps in the production, processing, and modification ... Read More

Kinds Of Companies

Bitopi Kaashyap
Updated on 16-Jan-2023 15:46:31
Introduction Depending on various factors, companies may be classified into various categories. These factors may include liabilities, member count, parameters of holding, or control among others. Let’s check the types of companies possible to be divided into various classes one by one. Types of Companies Companies may be broadly categorized into the following types: Based on Liabilities Companies Limited by Shares Companies Limited by Guarantee Unlimited Companies Based on the Member Count One-Person Companies (OPC) Private Companies Public Companies On the basis of Control or Holding Holding and Subsidiary Companies Associate Companies Companies ... Read More
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