Found 104 Articles for General Economics

Total Products, Marginal Products, And Average Products Total product, marginal product, and average product are used to analyze and examine the relationship between outputs and inputs in the production process. It is important to understand how changing inputs change the product output; so, the concepts of total, marginal, and average products are used to understand the relationship between inputs and outputs. Total Product (TP) TP means the total quantity of output generated by a firm or an entity during a given period. TP represents the sum total of all individual output units produced by utilizing various combinations of inputs, such ... Read More

What is a Secret Reserve? A secret reserve is a hidden or undisclosed sum of funds that banks or other financial institutions set aside for unseen future needs. These funds are not publicly reported in their financial statements. These funds are meant for sudden needs; they are kept confidential for strategic reasons. Secret reserves are manually created by the accounting team by deliberately underreporting profits or overstating company liabilities to create a cushion against future losses or risks. The concept of secret reserves has been a story of much controversy and so their use has become less common nowadays due ... Read More

Introduction: What is SEBI? The Securities and Exchange Board of India (SEBI) is the regulatory body that manages and oversees the securities market in India. SEBI was established on April 12, 1988, as an autonomous and statutory body, under the Securities and Exchange Board of India Act, 1992. SEBI's primary goal is to keep the securities market fair. So, it primarily protects investors from unfair practices and promotes the development of the securities market in India. SEBI works as a watchdog that formulates rules and regulations and ensures their implementation to keep the securities markets fair and transparent. Structure of ... Read More

What is a Scatter Diagram? A scatter diagram is a graph that shows the relationship between two different sets of data. Also known as a scatter plot, it is a simple and visual way to represent information. Examples of scatter diagram Suppose you have two sets of data, which are the number of hours passed studying and the corresponding marks obtained in the exam of a group of students. In a scatter diagram, you will need to plot each student's data point on a graph. On the graph, one axis will represent the hours spent studying, and the ... Read More

Introduction Both sales books and sales return books are crucial for the accounting and financial management of a business. They provide a chronological and systematic record of sales transactions and returns, which help understand the actual sales and how and why purchased goods have been returned. Let us learn what are sales books and sales return books, their content, and their advantages and disadvantages in this article. Sales books and sales return books are special types of registers or records in commerce and accounting that are used to track sales transactions and sales returns. Sales Books and its Contents Sales ... Read More

What is Sacrificing Ratio? The term "sacrificing ratio" is used in partnership firms. Sacrificing ratio is the ratio in which the partners decide to share the losses when one of the partners of the firm dies or retires from the business. Sacrificing ratio is used to distribute the losses among the remaining partners when a partner goes out of the partnership firm. Usually, the assets and liabilities of the partnership firms need to be reassessed when one partner leaves the business. This results in either gain or loss. This is where the sacrificing ratio comes into play. The sacrificing ... Read More

Introduction Rural credit is an extremely important step in financing agriculture, which is a major resource for generating food for millions of citizens. Many farmers in rural areas are unable to bear the burden of farming by themselves and they need assistance from either banks or the government. Rural credit, when provided to the right people, makes farming easier for the underprivileged farmers and artisans who reside in rural locations of the country. What is Rural Credit? India’s rural population is mostly engaged in agriculture. The people who are involved in agriculture need financial assistance to harvest crops. The ... Read More

Introduction Debit and credit are indispensable tools in accounting. Without debit and credit, accounting will be a big mess. Every accountant knows this. In keeping the records of business, therefore, debit and credit play a very important role. However, understanding the two terms and how to use them is not quite easy. Non-accounting professionals often get miffed by these two terms and which one to use while expressing a certain activity in accounting. Financial statements are divided into the following accounts − Assets Expenses Liabilities Equity, and Revenue This article discusses how debit and credit is applied to ... Read More

Introduction Small-scale industries play a very important role in developing the economy of a nation. The small-scale industry in India generates employment, reducing poverty and unemployment which are considered social evils. The small-scale industry is responsible for the rural and urban growth of the economy. The small-scale industries also play a key role in increasing manufacturing and infrastructure which leads to further development of the economy. Moreover, small- scale industries help the economy grow without producing pollution and help reduce slum areas by providing jobs to the slum residents. Therefore, we can say that small- scale industries are largely responsible ... Read More

Introduction Business organizations, particularly partnership businesses where partners retire or new partners are introduced need to revalue the assets and liabilities from time to time. Business organizations need to revalue their assets and reassess their liabilities from time to time because, with the passage of time, the values of assets and liabilities may change. This is particularly the case in partnership businesses where partners retire or new partners are introduced. Whenever the profit-sharing ratio in a partnership firm changes, the firm needs to value its assets and reassess the liabilities to remain up to date in terms of the current ... Read More