Accrual concept
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The document discusses the accrual concept in accounting. The accrual concept means that business transactions are recorded when they occur, not when related payments are made or received. This allows financial statements to reflect the true expenses and revenues for the period being reported. Examples are given of how accrual accounting would be applied, such as expensing rent over the period it is used rather than when payment is made. The significance is that accrual accounting provides a more accurate picture of actual expenses and income for a given time period, which allows for better calculation of net profit.
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This document provides an introduction to the concepts of accounting. It defines accounting as a system that collects and processes financial information to allow informed decisions by users. It discusses the need for accounting to determine results of business transactions and the financial position. It outlines the key functions of accounting like identifying, recording, classifying, summarizing, analyzing, interpreting and communicating financial information. It also discusses the accounting cycle and different branches and users of accounting information. Finally, it provides definitions of some basic accounting terms.
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The document discusses the concept of utility, beginning with its introduction by William Stanley Jevons and further development by Carl Menger and Leon Walras. It defines utility as the amount of satisfaction derived from consuming a commodity, noting that utility is subjective. It then discusses the characteristics of utility, the concepts of total utility, marginal utility, and their relationship. Finally, it contrasts the cardinal and ordinal approaches to utility analysis, explaining the law of diminishing marginal utility, law of equi-marginal utility, and indifference curve analysis under the ordinal approach.
Obj & scope of the business
The document outlines the objectives of business and scope of business activities. It discusses the main objectives of a business as earning profits for survival while also achieving economic, social, human, national, and global objectives. It also categorizes the scope of business into industry and commerce. Commerce involves facilitating the exchange and availability of goods and services and includes trade as well as auxiliary activities like banking, transportation, warehousing, insurance, and advertising that support trade. Trade is further divided into internal/domestic trade within a country's borders, international/foreign trade between countries through imports and exports, and entrepot trade which involves buying goods from one foreign country to sell in another.
Expert system (mis)
An expert system is an intelligent computer program that uses knowledge and inference procedures to solve problems that typically require significant human expertise. It consists of a knowledge base containing expertise and an inference engine that draws conclusions. Expert systems can assist humans when experts are unavailable, replace human decision making, and are often used in applications like accounting, geology, and medical diagnosis. However, expert systems also have limitations like being limited to narrow problems and not learning on their own.
artificial intelligence
Artificial intelligence (AI) is the intelligence demonstrated by machines, in contrast to the natural intelligence displayed by humans. This document provides an overview of AI, including its history beginning in 1943, main branches such as logical AI and pattern recognition, and applications like expert systems, speech recognition, computer vision, robotics. The advantages of AI are discussed, such as improving lives and doing dangerous jobs, but also potential disadvantages like unemployment and enhancing laziness in humans. The future of AI could include personal robots but also risks of robots being hacked or developing anti-social objectives.
State of Consciousness
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Accrual concept
- 1. Presentation By : Muhammad Aamir Roll no: 03
- 2. Business transactions are recorded when they occur and not when the related payments are received or made. This concept is called accrual basis of accounting and it is fundamental to the usefulness of financial accounting information. Definition of Accrual Concept:
- 3. Examples for the Accrual Concept: An airline sells its tickets days or even weeks before the flight is made, but it does not record the payments as revenue because the flight, the event on which the revenue is based has not occurred yet. An accounting firm obtained its office on rent and paid $120,000 on January 1. It does not record the payment as an expense because the building is not yet used. While preparing its quarterly report on March 31, the firm expensed out three months' rent i.e. 30,00 [$120,000/12*3] because 3 months equivalent of time has expired
- 4. Examples for the Accrual Concept: A business records its utility bills as soon as it receives them and not when they are paid, because the service has already been used. The company ignored the date when the payment will be made.
- 5. Significant of Accrual Concept: It helps in knowing actual expenses and actual income during a particular time period. It helps in calculating the net profit of the business.
- 6. Thank You