Ankita Chaurasia: Nurturing Minds through Tutoring

Answer

Chartered Accountancy is the core of the business. It has many streams like Auditing, Taxation, Management and Financing. Being a CA, you can set up your firm as a practicing Chartered Accountant or can be worked as salaried employee. Now- a-days  in any feild like Bank, Big4 CA Firms, IRDA, RBI, Public Ltd. Companies etc. Thus it has very bright future.

Answer

It does not matter whether you are a science student or commerece one. If you want to do CA then first understand the course pattern of CA. CA course is conducted by the Institute of Chartered Accountants of India(ICAI). Entire CA course is divided into three levels as follows:

1. First for entrance named as CPT comprising two modules and four papers,

2. Second for IPCC comprising of two groups and seven papers,

3. Third is the last stage named as CA Final comprising of two groups and eight papers.

But between IPCC and CA Final, one has to undergo Articleship Training under Practicing Chartered Accountant for 3 Years.

If One wants to pursue CA Course then he should register for CPT after 10+2. Exams for CPT is conducted twice in a year, in the month of June and December. Registration must be done atleast 2 months before appearing in the exams. 

Pattern of Exam is MCQs(Multiple Choice question) with negative marking of 25% for every wrong answer. Subjects at CPT Levels

1. Accountancy ( 60 Marks in First Module)

2. Mercantile Law (40 Marks in First Module)

3. General Economics (50 Marks in Second Module)

4. Quantitative Aptitude (50 Marks in Second Module)

For passing CPT, one should get 30% marks in individual subjects and 50% marks in aggregate/total.  This test is divided into two sessions of two hours each. Registration for CPT is valid for 3 Years.

If you want more information then visit the official website of ICAI i.e. www.icai.org

Answer

Elasticity simply regards to the change. Income Elasticity of demand is the degree of responsiveness of quantity demanded of a good to a small change in income of consumers. Simply measure of response of any change in demand due to change in income is called Income Elasticity of Demand. We can say in simple 

Percentage Change in Quantity Demanded should be divided by Percentage Change in Income

Answer

Answer will be 162.

In simple words we can say there is multiplication of 3 with first number to obtain second one. And this process is continuing process.

As we see, 

2*3=6

6*3=18

18*3=54

54*3=162

Answer

Land is the free gift of nature used as a factor of production. It is immovable. It has a good capacity to be fertilized. The remuneration given for use of Land is called Rent. Land, as ordinarily understood, refers to earth’s surface. Land refers to those natural resources that are useful and scarce. In other words, land stands for all natural resources, which yield an income or have an exchange value.

Land as a factor of production has the following characteristic features:

1) Land is fixed in quantity. It is said that land has no supply price. That is, price of land prevailing in the market cannot affect its supply; the price may be high or low, its supply remains the same.

2) Land has original and indestructible properties.

3) Land lacks mobility in the geographical sense.

4) Land differs in fertility.

Answer

Law of Demand defines the inverse relationship between price of the commodity and the units demanded of the quantity. That is, When the price of the goods rises, the demand for the quantity goes down or decreases and vice versa. Hence this relationship of demand with price is referred as Law of Demand.

However there are many exceptions:

1. War,

2. Ignarance

3. Irrational

4. Giffen Goods

5. Luxury Goods

6. Substitute

7. Necessities

8. Shares or Securities

Answer

There are two meaning of Fixed and Working Capital.

1. As per Partnership,

Fixed Capital is that amount of capital whic is introduced by the partners and any adjustments of Interest on Capital, Profit, Drawing etc. will not be made in the Capital A/c while for the adjustments Current Account is prepared.

Working Capital refers to the capital where all the adjustments are made in the initial contribution of the Partner

2. Other

Fixed Capital is the capital refers to the fixed nature whether introduced by the entrepreneur or as a result of investment like Land etc.

Working Capital is the capital required to operate the daily operations of the entity i.e. for daily trading in a operating period mostly one year. It is derived from substracting Current Liabilities from Current Assets.

Working Capital= Current Assets- Current Liabilities 

Answer

Average Profit is the sum of profit of different years divided by no. of total years. Capitalization means to capitalize the profit for getting the value of ideal capital to earn this profit at a normal rate of return.

Capitalized Profit= Averge Profit*100/Normal Rate of Return.

It is a method to find out the goodwill of the Firm. When capitalized profit is greater than the actual invested capital then this excess capital is called goodwill of the firm.

Answer

Tangible Assets are that fixed assets which have physical existence.

Intangible Assets are that fixed assets which are not physically exist.

Difference between Tangible and Intangible Assets:

1. Physical Existence-  Tangibe Assets are Physically exist while intangible one are not physically exist.

2. Decrease in the value of Assets:- Decrease in the value of tangible assets is called Depriciation whileDecrease in the value of Intangible Assets is called Amortization

Answer

Wholesale trade refers to trade where trade made in the large quantity or in  bulk of only one or two kinds of the commodity. It is the link between producer and retail traders.

Retail trade refers to trade made in small quantity of many different commodities. It is the link between customer and wholesale traders.