Depreciation and Amortization
Business, Commerce, Differences, Tax

Difference Between Depreciation and Amortization?

A gradual decrease in the value of an asset through wear and tear and obsolescence is called the depreciation. For example, Plant, machinery, building, furniture, computer hardware, road, railway line, bridge, airport, dams etc. A decrease in the value of an intangible asset is called amortization. Intangible asset means any patent, invention, design, copyright, trademark, computer software, motion picture film,…

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Economic Activities And Non-Economic Activities
Business, Commerce, Economics

Economic Activities And Non-Economic Activities

Economic Activities: These include all commercial and industrial activities which are connected with the production and or acquisition of wealth. These are also known as productive activities and are consisted of production and distribution of goods and services for earning a profit. Types of Economic Activities:  Economic activities can be classified into three types.     Business Profession Employment 1. Business All…

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Accumulated Profit (Earning)
Business, Commerce, Tax

What is Accumulated Profit (Earning)?

Accumulated profits (earning) play a vital role in the distribution of dividend. So, many businesses prefer to set aside a portion of their earned profit for future use. Any reserve maintained by a company out of its profit is called accumulated profit. It may be used for a general purpose in future or may ultimately be distributed amongst the shareholders…

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Difference Between Law, Act and Ordinance
Business, Differences, Law, Tax

Difference Between Law, Act and Ordinance?

Law is the body of rules and orders formally accepted by the community for the welfare and security of the community. Act means the formulation of rules and law by the parliament. Any legislation or enactment of the President is termed as Ordinance. An ordinance promulgated by the President has the same effect as an Act of Parliament.

Tax Meaning, Purpose and Explanation
Business, Tax

Tax Meaning, Purpose and Explanation

Tax Meaning and Purpose The word “tax” means “burden or duty”. It is an amount of money paid to the government, which is based on a person’s income or the cost of goods or services which a person has bought. The system of taxation is therefore considered as a way of earning income by the Government so that after its…

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Tax and Types of Tax
Business, Economics, Law

Tax and Types of Tax

The word “tax” means “burden or duty”. It is an amount of money paid to the government, which is based on person’s income or the cost of goods or services which a person has bought. DEFINITION A compulsory contribution made by the public for the support of a Government. The contribution is from persons, groups, or businesses within the domain…

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Fiscal Policy and Its Objectives
Business, Economics

Fiscal Policy and Its Objectives

Fiscal Policy Definition: It is the management of taxes and public expenditure to achieve the goals of economic growth with employment creation and stable prices. This policy must be consistent with other polices like monetary policy. What is Fiscal Policy? Public finance is managed by the government to influence the economy in a required direction. This is called fiscal policy.…

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Difference between Microeconomics and Macroeconomics
Business, Differences, Economics

Difference between Microeconomics and Macroeconomics

Economics is classified into many types but in this blog, we will concentrate only on microeconomics and macroeconomics presently. Microeconomics: The analysis of the behavior of individual decision-making unit within an economic system, from households to business firms is called microeconomics. It focuses on individual participant in the economy. For example, the producer, consumer, worker etc. The following issues (and…

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Market and Types of Market
Business, Economics

Market and Types of Market

What is Market? Market means an arrangement that bring buyers and sellers of product and resources together. The buyers and sellers can come together by any means of communication. They can come face to face as in a shop. They can communicate on telephone or by correspondence. In a market, the prices of goods and services tend towards equality through…

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Production in Economics
Business, Economics

Production in Economics

What is Production? Production is the process of using labour, capital and other inputs to make goods and services. Input mean labour, capital, land entrepreneurship and natural resources that are combined to make outputs like cars, computers, wheat, rice or any other marketable goods or service. Thus production is a process of transforming inputs into outputs. Production Function The more…

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