It is a statement of activities over a specified period.
Accountability is an obligation to produce such statement. The directors of companies are accountable to the shareholders.
Account can take various forms. Account may be the statement of the relation between two parties. For instance, bank account records the borrowing, deposits and withdrawal of the customers. Accounts of the goods and services provided to the customers being kept by the firms. Goods being provided on account are supplied on credit. An account rendered is a demand for payment for services as well as good supplied.
Account also means a systematic summary of activities in money terms of a business over a specified period of time usually annually. There are two common statements in such accounts such as the balance sheet and profit and loss account.
A profit and loss account shows the receipt of payments and the profit and loss made during an accounting period.
A balance sheet account shows the assets and liabilities of a firm on a specified dates at the start and at the end of an accounting period.
Accountant and are auditors and producers of accounts. They are professionally qualified.
The accounts have to be credible to the courts, creditors and tax authorities. Accounts of firms must be certified as accurate by professional auditors.
The surveys of the economic activities of a nation are stated on the national income and expenditure accounts. They consists of analysis of the production of goods and services, the expenditures of investors, consumers and the government and distribution of the incomes. Based on the national income accounts related to transactions with the rest of the world, the current account records sales and purchases of goods and services, and property transfers and incomes. The capital account records sale and purchase of assets such as real foreign direct investments, inwards and outwards and financial transactions, sales and purchases of securities abroad and the repayment and making of international loans.
Abiblo Economics – Acceptance Region
A set or range of values in statistical inference where the test statistics is likely to fall with a given probability if the null hypothesis is true.
The set of value which is complement of the acceptance region is termed the rejection region
Acceptance is when the signature of someone is added to a bill of exchange. Thus it means that you accept the liability to pay the bill at maturity when the original signatory default in payment.
The acceptor is taking the risk and makes a charge for this.
Acceptance of bill of exchange by a credible financial institution such as merchant bank, makes it the bill safer to hold and easier to sell.
It is an economic model which study the relationship between investment and to the change in the output.
The accelerator model affirms that the firms will invest more if the output is rising and the firm will invest less if the output is falling.
Behind this model, there is an underlying principle of demand and supply. If there is a rise in demand, the firm will produce more. This will lead to the rise of output.
The rise in output raises the ratio of output to capacity.This will lead to further expectation of further rises in demand and it will be more profitable for the firms to have more capital equipments.
Accelerated depreciation is the right to write down the capital goofs for tax purpose. It is faster than the rate at which they normal depreciated.
The purpose of accelerated depreciation is to promote investment which enable the company to defer the its taxes when it starts to invest.
Based on the concept of accelerated depreciation, the profit of the firm excluded of depreciation and therefore it tax liabilities are lower than under normal depreciation.
When the capital goods are written off, profit net depreciation become higher than they would have been under normal depreciation.
Abuse of Dominant Position
It happens when a dominant firm use the anti competitive business practices to maintain or increase the market share either in the geographical or product markets.
Abstinence is refraining consumption which could be taken immediately. Abstinence is the same as the saving where the funds not being spent arises from the current income. Abstinence also covers the act of refraining from running down past savings or spending windfall gains
Absolute advantage is the ability of the producer to produce an output by using lesser inputs than other producers. Absolute advantage does not provide guidance on how to allocate resources which are best considered in cases of comparative advantage.
Abnormal obsolescence means the loss of value of an asset, property or a piece of capital equipment due to the changes in tastes, circumstances or techniques which cannot be reasonably foreseen.
A specific equipment or asset may become obsolescence due to several factors such as consumers no longer want the good its produces or due to technical progress in other industries where the intermediate goods being produced is no longer needed.
New technique which is allow production will less labour, material or fuel may also lead to obsolescence. Besides that, non compliance with improved health and safety regulations may also lead to obsolescence.
Any natural catastrophe may lead to the property lose its value even without suffering from any damages.
Ability to Pay
Ability to pay is a principle which indicates that any tax should fall on those who able to pay. Taking into consideration of ability to pay means that the payment of tax increase with the observed assets or income of the tax payers.
Earning capacity should also be noted. The objection to ability to pay are that earning capacity is unobservable and that the taxing will reduce the the income and the incentive to work. The collection of taxes are unpopular move to those who are unable to pay.
Ability to pay is opposite to the benefit principle. In terms of benefit principle, only those who benefit from any given public expenditure should be taxed.
The tax revenue is useful for income redistribution and to pay for public goods.Due to the fact that the revenue is important in running the modern society and therefore taxation seems inevitable.