What would you like to do?
What does nature of business mean in accounting?
business are classified into two natures individual business & collective business
1 person found this useful
Was this answer useful?
Thanks for the feedback!
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 andfinancial accounting principles. The Accounting Theory iscontinuously-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 itscustomers in exchange for goods and the customers will credit theshop for the goods. In Accounting: . Debits… represent increases in value of assets and expenses anddecreases in income, liabilities and equity . Credits represent increases in liabilities, equity and incomeand 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 reasonaccounting seems backwards to most people. The way two partiesaccount for a transaction is a mirror image. When shops and bankstell you they are crediting your account, they are telling you howthey are accounting for it, which is backwards from the way youaccount for it.
types of nature of accounts
a good buiseness
"That is the nature of the business" is a term that means thatsomething happens because it is common experience for the event youare performing or doing. It usually implies 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.
There is no such thing as a best business. The question should be, which type of business is the best business for you (if you are interested in business). Your choice of care…er should be based on a passion for what you want to do. You must acquire a vision; A clearly articulated picture of the future you intend to create for yourself. It should be very specific. Once you have that vision, your path to achieve your career goals and objectives will become clear.
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 salons a…lso perform botoxinjections. Services vary from salon to salon.
car rental & cab services planing and finance
come on answer it