If an agreement has legal enforceability then those are called as Contracts. Contracts are categorized into executed and executory contract. In executed contract, parties involved in contract have performed their obligation and nothing is left. Whereas executory contract, obligations of parties are yet to complete. Unilateral contract and bilateral contracts ... Read More

Traditional commerce is part of a business that has all activities that facilitate exchange. Trade and auxiliaries of trade are kinds of traditional commerce whereas e-commerce refers to the exchange of goods & services, funds/information between customer and business by means of an electronic networkThe major differences between Electronic commerce ... Read More

Offer and invitation to offer are two different terms having separate meanings. An offer is a proposal and invitation of offer is to invite some body to make a proposal. Offer leads to enter into contract while invitation of offer leads to offer.Now let us understand the meaning of both ... Read More

Before going for differences, first let us understand the difference between contract and agreement and their typesAgreementAgreement is commitment made or proposal made by a person or a promisor to offer something to another person or a promisee and that promisee accepts that proposal with same considerations. Then it is ... Read More

The word synergy is commonly used in merger and acquisition. Finical benefits are achieved through merger of companies. Concept of synergy is the value and performance of individual companies is less than the value and performance of merged companies. By cross disciplinary workgroups, companies achieve synergies between departments.The main goal ... Read More

The terms used in Merger & Acquisition are explained below −Acquirer − It is someone who purchases a company.Acquisition − A company (1) taking control over another company (2) by purchasing more than 50% shares in company (2).Amalgamation: − Combining two companies into a single company.Asset deal − Acquirer buys ... Read More

The major differences between a passbook and a cash book are as follows −PassbookPassbook is the book which is issued by the concerned bank, which contains the details of account holder(s) and information related to the transactions (deposits and withdrawals) of the holder(s).These are prepared by banks. In this book, ... Read More

Errors in trial balance are classified into two types namely, errors disclosed and errors not disclosed. Errors disclosed and errors not disclosed are again subdivided into several types.Following diagram shows the classification of errors in trial balance −Classification of errors based on natureThe classification of errors in trial balance which ... Read More

Trail balance is worksheet which consists of all ledger balances and columned them as debit and credit. Later these debit and credit columns are equaled. Trail balance ensures entries are mathematically proven. It is prepared at end of reporting period and repeated for every period.To understand trail balance once should ... Read More

Petty cash is nothing but small amount of cash that kept for minor expenses like office supplies, reimbursing employee, and payment for catered lunch etc. In big companies or in larger companies each department has its own petty cash. The main advantage of having petty fund it is convenient and ... Read More