After reading this article you will learn about:- 1. Meaning of Credit 2. Mechanisms of Operating Credit 3. Advantages 4. Disadvantages. Meaning of Credit: Cash transaction is one in which cash is not paid at the time of purchase of a commodity or service. A credit transaction means that the buyer will pay for the commodity to the seller at [...]
After reading this article you will learn about the principles and forms of taxation. Principles of Taxation: Taxation is required to cover Government expenditures such as cost of: (i) Administration, (ii) Defence from external aggression, (iii) Police for the maintenance of law and order, (iv) Judicial courts for administration of justice, (v) Schools and colleges for giving education to people, [...]
The following methods may be employed for calculating depreciation of an asset: 1. Straight Line Method 2. Reducing Balance Methods 3. Production Based Methods 4. Repair Provision Method 5. Annuity Method 6. Sinking Fund Method 7. Endowment (Insurance) Policy Method 8. Revaluation Method 9. Sum of the Digits Method. 1. Straight Line Method: This method provides for depreciation by means [...]