Distributive property, as it name says this property distributes or expands the elements of expression For Example:
X.(Y+Z) = X.Y + X.Z
Showing posts with label Basics. Show all posts
Showing posts with label Basics. Show all posts
Set of whole numbers does not satisfy all requirements, also it does not include negative numbers. To overcome this disadvantage, a set of integers is constituted that also represent negative integers over the set of whole numbers.
This set is definitely superior to natural and whole numbers in the sense that it caters to a larger audience as compared to the other number system dealt so far. A set of integers is denoted by "I" and represented as
I = { …. -4, -3, -2, -1, 0, 1, 2, 3, 4…. }
In economics, a country's GDP is the total value of goods and services produced within a country in a year, not including its income from investments in other countries. GDP is an abbreviation for `gross domestic product'.
GDP is the standard measure of the size of the economy. It is the total production of goods and services within the country. The total value of a nation's output, income, or expenditure produced within a nation's physical borders. One of the main measures of economic activity.
Real Account is a most important classification which highlights the real worth of the assets. This is the account principally deals with the transfer of assets.
It is an account which reveals the value and movement of the assets taking place in between the firm and also other parties due to any transactions.
The movement of the assets can be classified into two categories, i.e. the assets which are going out of the firm and the assets which are coming into the firm. The accounting treatment for this account is, "Debit what comes in, Credit what goes out."
"Debit what comes in, Credit what goes out."
Personal Accounts is an account which deals with a due balance either to or from these individuals on a particular period. It is an account normally reveals the outstanding balance of the firm to individuals. All the accounts which falls under this category have same kind of treatment and that is,
"Debit the Receiver, Credit the Giver."
Nominal account deals with the amount of incomes earned or expenses incurred. It takes in all expenses and losses as well as incomes and gains of the enterprise. Nominal account records the expenses and incomes which are not carried forwarded to near future. The accounting treatment for this account is,
"Debit all the expenses and losses, Credit all incomes and gains"
Bonus shares are shares which is issued by the companies to their existing shareholders at free of cost on the proposition of shares what the shareholder owns.
Read Full post!Inflation is the rate at which the cost of living increases.
The cost of living is simply what it costs to buy the goods and services you need to live. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past.
For example, if there was a 10% inflation rate for the next year, a
Rs. 100 purchase today would cost Rs. 110 in a year.
This is why it is important to consider inflation as a factor in any long-term investment strategy. Remember to look at an investment's 'real' rate of return, which is the return after inflation. The aim of investments should be to provide a return above the inflation rate to ensure that the investment does not decrease in value.
For example, if the annual inflation rate is 10%, then the investment will need to earn more than 10% to ensure it increases in value. If the after-tax return on your investment is less than the inflation rate, then your assets have actually decreased in value; that is, they won't buy as much today as they did last year.
Finance in simple it is art & science of managing money. Finance in broader view it deals with two things ie., Financial service and financial management.
Read Full post!
Subscribe to:
Posts (Atom)
