Tag Archives: Capital

What is meant by derived demand?

What is meant by derived demand? 1. Demand for a basic good (wanted not for its own sake but for the goods derived from it) such as a textile that is due to its use in the production of another good such as apparels. 2. Demand for an input to a production process, dependent on the output of a final …

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Write two factors of national income

Write two factors of national income   Natural resources Man made sources Capital Human resources State of technology Entrepreneurial ability Political stability Spirit of work Division of labor and specialization

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Define sole trader ship and explain its characteristics

Define sole trader ship and explain its characteristics A sole trader is a company started and run by one individual Characteristics Single ownership Easy formation Capital Risk Sharing of profit and loss Management and control Unlimited liability Less legal formalities Relationship with customers Legal status Easy of dissolution

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Define partnership and explain its advantages

Define partnership and explain its advantages A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business. Advantages Ease of Organization Sufficient Capital Borrowing Facilities Simplicity in Dissolution Combined Abilities Skilled Workers Minority Protection Personal Interest Minimum Legal Restrictions Public Trust Expansion of Business …

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Define mudarba

Define mudarba Partnership where one provides the capital and the other the entrepreneurial expertise with the profits being shared Or Arabic-styled finance, pre-Islamic. One individual provides startup capital as the financier. Another individual will do the actual work, as the entrepreneur. Here, a single-tiered mudaraba exists. If there is a go-between negotiator, a two-tier mudaraba now exists. A mudaraba is …

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What do you mean by issued capital?

What do you mean by issued capital? The share capital that has been issued to shareholders. This is part of a company’s authorised capital (the maximum amount of capital a company can issue under its articles of association). The part that has not been issued is called unissued capital. Source: http://lexicon.ft.com/Term?term=issued-capital Or Issued capital is the value of the shares …

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Rectification of Errors Important Question 3 for I.Com Part 1

Rectification of Errors Important Question 3 for I.Com Part 1 Correct the following errors by passing journal entries (i) The purchase book was under casted Rs. 1,000. (ii) Machinery bought Rs.1,000 posted as purchases. (iii) Sales book was overcastted Rs. 550. (iv) Sold old furniture for Rs.250 passed through the day book. (v) Carriage on machinery Rs. 500 has been …

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Capital and Revenue Important Question 6 for I.Com Part 1

Capital and Revenue Important Question 6 for I.Com Part 1 State with reasons whether the following are capital or revenue   (i) Purchased land on lease. (ii) Paid premium on lease. (iii) Paid salary to staff (iv) Purchased machinery. (v) Purchased raw material.   Solution   (i) Capital expenditure Reason purchases the fixed asset.   (ii) Capital expenditure Reason obtain …

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Final Account Important Question 1 for I.Com Part 1

Final Account Important Question 1 for I.Com Part 1 From the following trial balance Naeem & Sons, prepare trading, profit & loss account and balance sheet for the year ended 31st December 2002:   Debit   Drawings 360 Opening stock 26,540 Building 20.000 Salaries 600 Sundry debtors 2,780 Cash in hand 690 Cash at bank 18,500 Purchases 16.760 Discount allowed …

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Objective Type Questions for Principle of Accounting I.Com Part 1 (a)

Objective Type Questions for Principle of Accounting I.Com Part 1 Test 1

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