Tuto Commerce World

  Entity Entity means a reality that has a definite individual existence. Business entity means a specifically identifiable business enterprise like Super Bazaar, Hire Jewellers, ITC Limited, etc. An accounting system is always devised for a specific business entity (also called accounting entity). 2. Transaction An event involving some value between two or more entities. It can be a purchase of goods, receipt of money, payment to a creditor, incurring expenses, etc. It can be a cash transaction or a credit transaction. 3. Assets Assets are economic resources of an enterprise that can be usefully expressed in monetary terms. Assets are items of value used by the business in its operations. For example, Super Bazar owns a fleet of trucks, which is used by it for delivering foodstuffs; the trucks, thus, provide economic benefit to the enterprise. This item will be shown on the asset side of the balance sheet of Super Bazaar. Assets can be broadly classified into two types: current an...

 Accounting is a means by which necessary financial information about business enterprise is communicated and is also called the language of business. Many users need financial information in order to make important decisions. These users can be divided into two broad categories: internal users and external users. Internal users include: Chief Executive, Financial Officer,Vice President, Business Unit Managers, Plant Managers, Store Managers, Line Supervisors, etc. External users include: present and potential Investors( shareholders), Creditors (Banks and other Financial Institutions, Debenture holders and other Lenders), Tax Authorities, Regulatory Agencies (Department of Company Affairs, Registrar of Companies, Securities Exchange Board of India, Labour Unions, Trade Associations, Stock Exchange and Customers, etc. Since the primary function of accounting is to provide useful information for decision-making, it is a means to an end, with the end being the decision that is helped...

  In 1941, The American Institute of Certified Public Accountants (AICPA) had defined accounting as the art of recording, classifying, and summarising in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof’. Branches of Accounting The economic development and technological advancements have resulted in an  increase in the scale of operations and the advent of the company form of business organisation. This has made the management function more and more complex and  increased the importance of accounting information. This gave rise to special branches  of accounting. These are briefly explained below : Financial accounting   The purpose of this branch of accounting is to keep a  record of all financial transactions so that: the profit earned or loss sustained by the business during an accounting period  can be worked out, the financial position of t...

  Commerce Introduction Commerce is the large-scale organized system of activities, functions, procedures and institutions that directly or indirectly contribute to the smooth, unhindered distribution and transfer of goods and services on a substantial scale and at the right time, place, quantity, quality and price through various channels from the original producers to the final consumers within local, regional, national or international economies. Commerce consists of; Trade Aids to trade Trade Trade is the central component, is the exchange of goods and services between buyers and sellers for a price and it is broadly categorized into domestic trade (including retail and wholesale as well as local, regional and inter-regional trades) and foreign trade (including import, export and entrepôt trades). Aids to trade   Aids to trade or auxiliary commercial activities facilitate trade and include commercial intermediaries, banking and financial services, transportation, warehousi...