Trade

Trade is buying and selling goods and services. In trade, the ownership of a good is transferred from the seller to the buyer. This transfer of ownership happens in exchange for money. There are two main types of trade. Domestic trade International trade Categories of Trade Domestic trade Domestic trade Read more…

Introduction to Businesses

Concept of business In the ancient era, people’s needs and wants were simple. Therefore, ancient people tried to produce what they needed by themselves.  When a person produces what he needs by himself or herself, we call it a direct production or self-production. Growing vegetables and fruits in the home Read more…

Financial Statements of a Sole Proprietorship

A sole proprietorship prepares two financial statements. Statements of Profit or Loss Statement of Financial Position We use a specific period to prepare financial statements.  We call this period an “accounting period”. Generally, it is for 12 months. The financial statements are the output of the accounting process. Statements of Read more…

Discounts

A discount is a is the deduction from the value of a transaction. Two main types of discounts are: Trade discount Cash discount Trade discounts Most of the business tend to sell products by deducting a certain amount from the listed price. Therefore, a trade discount is a deduction from Read more…