Accounting Concept- Part One
Accounting Concept Understanding "Business" Is Fundamental before learning Accounting One could not understand Accounting and its concepts if he couldn't able to Understand Business Now, what is Business Activity? Any activity which is undertaken to earn PROFIT is business. Like a doctor earning a salary in a Hospital is making INCOME but not PROFIT. So his activity is not "Business Activity" WHY? If he is attending 1 patient daily or 100 it will not affect his monthly salary as it is the same monthly or annually. One Patient OR Several, Earning is the same BUT If the same Doctor Opens his own Clinic, now attending the number of patients matters to him and his Income and Profit will increase or decrease with the increase or decrease of his business activity. So in business, the level of business activity affects the income of the Business. More business activity means more income and profit. That is why every Business try to increase its Sale or number of C...