Webzily Digital Marketing

ECONOMY AND ECONOMIC PROBLEM WHAT IS AN ECONOMY? MEANING OF AN ECONOMY:- In economics the world economics refers to the production activities of a well defined area or a region. It may be a village, a district, a city, a country or the whole world. For example when we refer to the Indian economy, we actually refer to the whole collection of farms, factories, shops, offices, banks, colleges, theaters, TV channels, and many more. Production activities are carried out by the people to earn livelihood. The earnings are in the form of wages, rent, interests and profits. On the basis of above description, economy can be defined as follows: Economy means the whole collection of production units operating in  a defined area or region by which people of that area get their living. FUNCTIONING OF AN ECONOMY An individual needs a large number of goods and services to survive and enjoy life. No individual can ever produce on his own all what he needs. He can ever prod...

INTRODUCTION TO ECONOMICS Economics is a social    science which studies the way the society chooses to use its limited resources to produce goods and services and disturb them among people. It is a science that analyses the choice making economic behavior. Is the analysis limited to the behavior of an individual or is it extended to the country as a whole? Economics studies both. It analyses the behavior of an individual under the branch of economics called ''microeconomics'' The behavior of the society as a whole is analysed under the branch ''macroeconomics''.        MICROECONOMICS AND MACROECONOMICS Study of economics is traditionally divided into microeconomics and macroeconomics. The terms ''micro'' and ''macro'' come from the Greek words meaning ''small'' and ''large''. MICROECONOMICS   Microeconomics studies the behavior of individual economic units...

FINANCIAL ACCOUNTING PRINCIPLES NATURE OF ACCOUNTING PRINCIPLES:- The dictionary meaning of the word principle is:' 'a fundamental truth or law as the basis of action .'' The term principle generally suggests universal application of rules and a degree of permanence which is not possible in accounting. Accounting is a social science and not a physical science. Thus the essential feature of accounting principles is that they are flexible rather than precise or rigid.  Accounting principles are man made and are derived from experience and reason. Accounting principles are judged on their general acceptability rather than universal acceptability to the makers and users of financial statements. Hence they are popularly called Generally Accepted Accounting Principles(GAAP) CHARACTERISTICS OF ACCOUNTING PRINCIPLES (i) Accounting principles have been developed to ensure uniformity and easy understanding of the accounting information. (ii) Accounting principle...