MGT101 Short Notes by VU Topper RM

Mgt-101 Short Notes For Semester : Solve By Vu_Toper-RM · All Paid Services Is Available !! · VU · Online Classes + Project · Nothing Is Impossible >> O3224021365

Define business.

Answer: Any legal activity undertaken for the purpose of earning profit is called business. What are different classes of business?

Answer: I) Trading 2) Manufacturing 3) Servicing Define manufacturing.

Answer: A business in which goods are purchased and resold after some modification is called manufacturing. For example; Sugar mills and Textile Mills.

Define Servicing.

Answer: A business in which services are purchased and sold is called servicing. For example, services of doctor and lawyer etc.

Define Trader.

Answer: A person who performs trading is called trader. For example: wholesaler, retailer.

Define manufacturer.

Answer: A person who performs manufacturing is called manufacturer. For example, sugar producer, cloth producer. Or A person who converts raw material into finish goods is called manufacturer.

Account:

An accounting record in which the results of transactions are accumulated; shows increases, decreases, and a balance

Account payable:

An amount owed to a supplier for good or services purchased on credit; payment is due within a short time period, usually 30 days or less.

Account receivable:

A current asset representing money due for services performed or merchandise sold on credit.

Account receivable turnover:

A measure used to determine a company's average collection period for receivables; computed by dividing net sales (or net credit sales) by average accounts receivable.

A service activity designed to accumulate, measure, and communicate financial information about economic entities for decision-making purposes.

Accounting cycle:

The procedures for analyzing, recording, classifying, summarizing, and reporting the transactions of a business.

Accounting model:

The basic accounting assumptions, concepts, principles, and procedures that determine the manner of recording, measuring, and reporting an entity's transactions.