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What does nature of business mean in accounting?
business are classified into two natures individual business & collective business
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When filling out a form, "nature of business" refers to the type or general category of business or commerce you are describing. For example, if you work at Microsoft, then th…e nature of your business is software. If you work at a restaurant, the nature of your business is food services. Other examples include retail, wholesale, manufacturing, and marketing.
producing goods for a valued exchange.
producing goods as valued exchange
Accounting Theory is defined as the study of methodologies and financial accounting principles. The Accounting Theory is continuously-evolving and changing.
According to "Business is an enterprise engaged in the production & distribution of goods for sale in a market or the rendering of services for a price. L.R. Dicksee, "Busin…ess is a form of activity pursued primary with the object of earning profits for the benefit of those on whose behalf the activity is conducted".
Credit is giving money and debit is taking. A shop will debit its customers in exchange for goods and the customers will credit the shop for the goods. In Accoun…ting: Debits represent increases in value of assets and expenses and decreases in income, liabilities and equity Credits represent increases in liabilities, equity and income and decreases in assets and expenses Example: To record the purchase for cash of office furniture Debit Office Furniture and Credit Cash The shop example above is an excellent example of the reason accounting seems backwards to most people. The way two parties account for a transaction is a mirror image. When shops and banks tell you they are crediting your account, they are telling you how they are accounting for it, which is backwards from the way you account for it.
types of nature of accounts
a good buiseness
"That is the nature of the business" is a term that means that something happens because it is common experience for the event you are performing or doing. It usually impl…ies a bad experience.
It is a bank account specialised for the needs of a business.
A Chart of Accounts is more than a list of General Ledger Accounts. A functing Chart of Accounts is: (1) the center of the financial record keeping process (2) a 'posting …map' for recording financial transactions (3) the outline for financial reports Developed correctly, the Chart of Accounts will clearly communicate financially significant information; information that informs owners and managers about the financial condition of their venture and that assist them in making prudent, accurate, proactive business decisions. A functional Chart of Accounts has three characteristics: Reasonable size - Reports should be no longer that two pages.Organized Logically - Balance Sheet GL Accounts are pretty well set by Accouting standards; Profit and Loss GL Accounts are yours to toy with.Defined - Each GL Account needs a detailed definition to assist the non-accounting employees in understanding the nature of each account and to guide the bookkeeper (espically a new bookkeeper) in recording transactions. The point here is, 'don't just list expenses' think through the financial significances of each GL Account.'
The nature of business is what kind of business are you doing in your job. For example you work in McDonalds so the nature of business is the food service.
I belive it's originally a quote of management specialist Peter Drucker. It means that you can not and should not expect individual businesses to include e.g. social or enviro…nmental considerations in their decision making BEYOND what is required by the law. You get optimal resource allocation in society by letting business optimize economically within the politically defined constraints. If you want e.g. social improvements then you should change the political constraints, not appeal to business leaders good will.
A salon may provide a variety of services from hair (cut, color, style) to nails (manicures, pedicures, nail tips--ceramic, gels, etc.), to facials, massages, etc. Some sa…lons also perform botox injections. Services vary from salon to salon.
car rental & cab services planing and finance
come on answer it