Ledger

Definition: Ledger implies the principal books of accounts, wherein all accounts, i.e. personal, real and nominal are maintained. After recording the transactions in the journal, the transactions are classified and grouped as per their title, and so all the transactions of similar type into are put in a particular account. Format of Ledger A ledger…

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Journal

Definition: In the accounting world, Journal refers to a book wherein transactions are logged for the very first time, and that is why it is also called as “Book of Original Entry“. In this book, all the regular business transactions are entered sequentially, i.e. as an when they arise. After that, the transactions are posted…

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Financial Statement

Definition: Financial Statement are systematically maintained,¬†written summary of all the ledger account heads, exhibited in a way that it provides a clear view of the financial position, profitability and performance of the enterprise. These are prepared at the end of the accounting period, which is usually one year, after that it is audited by the…

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Trial Balance

Definition: Trial Balance refers to a schedule, in which the balances of all ledger books are assembled into debit and credit columns, to check the arithmetical accuracy of the entries posted in the ledger accounts. Trial Balance is a tabular statement, containing a specified date on which it is prepared, indicated at the top of…

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Internal Environment

Definition: Internal environment is a component of the business environment, which is composed of various elements present inside the organization, that can affect or can be affected with, the choices, activities and decisions of the organization. It encompasses the climate, culture, machines/equipment, work and work processes, members, management and management practices. In other words, the…

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Management Accounting

Definition: Management Accounting refers to the application of professional knowledge, techniques and concept in preparing the accounting information in such a manner, which helps the management of the organization in the formulating plans and policies, controlling the operations of the organization, decision making, optimising the use of resources, disclosure to management and safeguarding assets. In…

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Quality Assurance

Definition: Quality Assurance is a managerial tool that encompasses all the systematic actions required for providing sufficient confidence, that a product will meet the requisite quality. Here, the confidence is bifold, as in internally to the company’s management and externally to the stakeholders such as customers, creditors, clients, society, government agencies, third parties, etc. Altogether,…

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Diversification

Definition: Diversification can be understood as the corporate strategy that a company implements to increase the market share and sales volume by introducing new products in new markets or industry, which is distinct from its core business. Simply put, diversification refers to the expansion of business by entering into a completely new segment or investing…

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Functional Level Strategy

Definition: Functional Level Strategy can be defined as the day to day strategy which is formulated to assist in the execution of corporate and business level strategies. These strategies are framed as per the guidelines given by the top level management. Functional Level Strategy is concerned with operational level decision making, called tactical decisions, for…

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Competitive Strategy

Definition: Competitive Strategy can be defined as the firm’s long term action plan that formulated by considering several external factors, that helps the company to achieve competitive advantage, increase the share in the market and overpower rivals. Competitive advantage is the result of the firm’s excellence in performing activities. The firm’s external environment, has the…

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