Goodwill means the good name or wide business connections or reputations earned by a businessman through his hard work and honesty. This helps the business to earn more profit.
A partnership is a form of business in which two or more but not more than twenty people own a business, it is based on a written contract or on an oral agreement.
In accounting an amalgamation, or consolidation, refer to the combination of financial statements. For example, a group of companies reports their financials on a consolidated basis which includes the individual statements of several smaller businesses.
A merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity. The firms that agree to merger are roughly equal in terms of size, customer, scale of operations, etc. for this reason, the term ‘’ merger of equal’’ is sometimes used.
When the business transactions are recorded in the books of accounts there remains a possibility of accounting errors. It may be because of hastiness in writing, negligence, oversight or incomplete knowledge of the principles of accountancy.
Betterment of fixed assets or improvement of an asset to produce more to improve its earning capacity or to reduce its operating expenses or to increase the life of asset.
Accounting principles = concepts + accounting conventions commonly known as GAAP (Generally accepted accounting principles) based on which financial statements are to be prepared. Accounting principles are divided into two parts, concepts, and conventions.
The World Bank is an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.
Special drawing rights (SDR) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing money reserves of member countries.
The international monetary fund (IMF) came into official existence on December 27, 1945, when 29 countries signed its articles of agreement(it’s charter) agreed a conference held in Bretton woods, new Hampshire USA, from July 1-22, 1944. The IMF commenced financial operations on March 1, 1947.