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Book-keeping

 Book-keeping is an art of recording, Classifying, summarizing in a systematic manner of business transactions.
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Functions and limitations of financial Accounting

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  Accounting is often referred to as the language of the business. Financial Accounting is concerned with recording of day to day transactions. Definition:-      American institute of certified public accountants has defined the Accounting as the art of recording Classifying and Summarizing in a significant manner and in terms of monetary transactions and events which in part, at least of financial character and Interpreting the results thereof.     Two principle statements of financial Accounting are income and expenditure statement (profit and loss Account) and balance sheet. The profit and loss account reveals the profit and loss account reveals the profit earned or loss sustained for a given period i.e for a year . All revenue transactions are included in this statement with a view to determine the profitability of the business concern. Balance sheet reveals the financial position for the business concern on a particular date. Functions of financial Acc...
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Inventory valuation

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     According to Kohler's Dictionary for Accountants, inventory is defined as " Raw materials and supplies, goods finished and in process of manufacture and merchandise on hand, in transit and owned, in storage or consigned to other at the end of an accounting period.   Inventory forms a significant portion of the total assets  of many enterprises and a lot of working capital is invested in this item.   Inventories generally constitute the second largest item after fixed assets, in the financial statements, particularly of manufacturing concerns.  This is why valuation of inventories has assumed significance in recent years.   The values attached to inventories can materially affect the operating results as shown by trading and profit and loss account and the financial position of a business firm because closing inventory (stock in trade) is shown on the credit side of the trading account and this amount is also shown as current asset in the Bala...
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