Accounting and Finance Questions

The interest-rate effect suggests that an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending.

Gratuity is paid to all such employees after their resignation or retirement.Incase of resignation gratuity is paid to such employees who have completed 5 years of service.

Calculation of gratuity = Basic + DA x (15/26) x Total no. yrs service

15- Half month

26- Excluding 4 sundays

The chart of accounts is designed to to meet the information needs of a company and other financial statement users.

The Internal Rate of Return (IRR) is defined as the measure of an investment’s rate of return. It is also called the discounted cash flow rate of return.

Purchase return and allowances is a contra account to purchases.

Different types of risk exist in ivesting schemes depending on what you've invested in.

Savings accounts are generally regarded as the least risky investments as in this we just save our wealth for future expenses.