Classification of transactions relating to the flow of income and its disposition:
Output can be looked from another point of view flow of income, flow between producers and the suppliers of factors of production, the components of gross incomes are as follows:
- Compensation of employees: It refers basically to the total gross wages paid by employers to employees for work done in an accounting period. It may be in cash or in kind. It also includes the employers contribution to social security schemes and to private pension family allowance etc.
- Operating surplus and withdrawals from entrepreneurial incomes: Operating surplus is income from industries. It is estimated as producer’s value of outputs of industries less value of intermediate consumption and compensation of employees.
- Consumption of fixed capital: Consumption of fixed capital represents the mount of fixed assets used up, during the period under consideration, as a result of normal wear and tear and foreseeable obsolescence.
- Indirect taxes: Charge levied by the State on consumption, expenditure, privilege, or right but not on income or property. Customs duties levied on imports, excise duties on production, sales tax or value added tax (VAT) at some stage in production distribution process, are examples of indirect taxes because they are not levied directly on the income of the consumer or earner.
Explain the transactions relating to uses of final goods and service.
Use of final goods and services or disposition of final output: total supply of final goods and services are used as:MoreAnswered
What the Intermediate consumption?
Intermediate consumption can be classified into following: Intermediate consumption by non-fina...MoreAnswered
What is Depreciation, Obsolescence and Capital Loss in national income.
While carrying process of production, machinery and other capital equipment's are used and undergo wear and tear. Thus, their usef...MoreAnswered
Explain briefly the ways of Acquiring capital goods.
Capital formations in a year can be either by acquiring durable capital goods or increasing stock or both. The process of acquirin...MoreAnswered
- Classify the Capital Formation in national accounting. Answered
Define the meaning and importance of capital formation.
Meaning of Capital Formation: In an economy, we can use the terms investment and capital formation inte...MoreAnswered
Differentiate the flow of funds system and other accounting systems.
The differences between flow-of-funds system of accounts and other accounts mainly, national income accounting, input-output a...MoreAnswered
Explain the Erik Erikson's theory of Psycho-social Development.
Erik Erikson's theory of psycho-social development is one of the best known theories of personality in psychology. Erikson believed that personality develops in...MoreAnswered
What were the Shortcomings in Piagets theory?
The Some Important Shortcomings of Piagets theory. Problems with Research Methods. Much of the criticisms ...MoreAnswered
Explain the four cognitive processes in Piaget's cognitive theory of development.
Four Cognitive Processes are: Schemas: A schema describes both the mental and physical actions involved in understan...MoreAnswered
Write the characteristics of Authentic Activities.
The main characteristics are: Authentic activities have real-world relevance. Authentic activities are ill-de...MoreAnswered
What is Four Pillars of Education?
Four Pillars of Education. UNESCO is the UN agency that deals with education. It regularly held a special meeting with the nine count...MoreAnswered