Issue and Allotment of Shares
Allotment and issue of shares The terms Issue and Allotment of Shares are often used interchangeably. In some cases, particularly when shares are created by a public…
Accounting
Forfeiture of Shares
Forfeiture of Shares A type of ownership share whereby the holder gives up certain rights due to not fulfilling obligations required for purchasing the share. The rights lost may include claims on dividends or capital gains or ability to purchase additional stock. This…
Distinction between Stock and Share
Distinction between Stock and Share Stock and Share, represent an ownership interest in a corporation. Bonds are a form of long-term debt in which the…
Concept of Company Share
Concept of Company Share: A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that…
What is Company?
What is Company? A voluntary association formed and organized to carry on a business. Types of companies include sole proprietorship, partnership, limited liability, corporation, and public limited company. A Company is a voluntary association of person formed for…
What is Meant by Branch Accounts?
What is Meant by Branch Accounts? The practice of keeping separate bank accounts for each branch of a company even though the branches together with the home office form…
What is Meant by Double Account System?
What is Meant by Double Account System? The double entry system of accounting or bookkeeping means that every business transaction will involve two accounts (or…
What is Meant by Profit Volume Ratio?
What is Meant by Profit Volume Ratio? The profit volume ratio, also called the contribution margin ratio or the variable profit ratio, is one of the…
What is Meant by Cost Volume Profit Relationship?
What is Meant by Cost Volume Profit Relationship? Managerial accounting provides useful tools, such as cost-volume-profit relationships, to aid decision-making. Cost volume profit relationship helps you…
What is Meant by Break Even Point?
What is Meant by Break Even Point? Break-even analysis is a method used in business to calculate the the total or number of items that…
Semi Variable Expenses
Semi Variable Expenses The most common semi-variable expense for manufacturers is electricity. Manufacturing companies rely heavily on machinery to complete production tasks, but the frequency with which that…
What is Meant by Marginal Costing?
What is meant by Marginal Costing? The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce…
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