Business term as part of our Accounting
"Business term is the part of our Accounting". Illustrate this statement.
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Business term is the part of our Accounting. We can state business with the following way:
Business is all actions whose purpose is to earn money. A teacher teaches his own son or daughter is not business since he is not teaching his child for the aim of earning money. However similar teacher executes his private coaching center for offering coaching services. This coaching center is his business since he wants to earn money from that coaching center. He takes risk of his investment and as well interested to acquire high return on his investment.
For doing business, businessman has to give services or goods to customers. After taking risk, doing hard-work and giving goods or services, businessman gets return in the form of gain. However it is his risk. At time, he can too suffer loss in such activities.
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To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain
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