IGCSE O & A Level Tuitions - Accounting, Business, Economics & Commerce

Problems arising from fast Economic Growth :

1. High inflation rates
2. Unfair distribution of income
3. Environmental damage
4. Depletion of non-renewable natural resource
5. Higher imports / Worsening balance of payment deficit
6. Human cost / Increased stress levels & burn-out
7. Urban congestion
8. Pressure on infrastructure
9. Labour & capital shortages

Deflation is a sustained, general decrease in the prices of goods and services across an economy, often measured by a negative Consumer Price Index (CPI) inflation rate.

It increases the purchasing power of money, meaning your money is worth more over time.

While lower prices may seem positive, it can lead to economic contraction if consumers delay purchases expecting further price drops

Major influences on Consumer Expenditure
Income levels
Consumer confidence
Level of wealth
Interest rates
Availability of credit
Inflation rates
Level of taxes
Cultural and social influences
Demographic factors

Total Surplus
Consumer Surplus
Producer Surplus
Demand
Supply
Price
Market Price
Equilibrium

Prudence / Conservatism Concept

It is a fundamental principle in accounting that requires accountants to be conser-vative and cautious when making estimates and judgments.
The concept helps ensure that financial statements are accurate and reliable.
It requires accountants to:
Recognize expenses immediately
Defer revenue recognition until it's reasonably certain
Recognize potential losses early
Only recognize gains when certain: Don't make estimations when recognizing gains

Private / Home / Online Tuitions

Cambridge & Edexcel

IGCSE O & A Level

● 15 years experienced teacher
● Full syllabus coverage
● Special focus on difficult syllabus areas
● Extensive past papers practice
● Crash & regular sessions
● Individually tailored study plans

Kindly Call / WhatsApp for instant response.

A. Karim Lakhani

0333 - 888 67 - 48
0333 - TUTOR - 4U

+92 333 888 67 48

www.tutor4u.pk

Bank Reconciliation Statement :

Transactions that require updating of Cash Book

Bank charges
Dishonoured cheques
Interest paid / received
Direct Debits
Standing Orders
Deposits by customers
Unrecorded income

Capital reserves are restricted funds created from non-operating capital gains (e.g., asset sales) used for long-term projects or to write off capital losses, and are generally not distributable as dividends.

Conversely, revenue reserves are funds set aside from normal operating profits (retained earnings) used for daily operations, contingencies, or dividend payments.

Key Aspects of Capital Reserves

Source: Derived from capital profits, such as profit on the sale of fixed assets, share premiums, or revaluation of assets.
Purpose: Designated for specific, long-term capital purposes, such as financing expansion or absorbing capital losses.
Dividends: Cannot be distributed as dividends to shareholders.
Examples: Share premium account, revaluation reserve, capital redemption reserve.

Want to learn more about
Parts of Unified Commerce ?

Home / Online Tuitions

Cambridge & Edexcel

IGCSE, O Level, A Level COMMERCE

Subject specialist teacher available for one-on-one online / offline classes.

A. Karim Lakhani

Call / WhatsApp

0333 - 888 67 - 48
0333 - TUTOR - 4U

+92-333-888-6748

www.tutor4u.pk

Enquiries welcome !

Major influences on a country's Exchange Rate :

Interest rates
Speculation
Inflation rates
Economic growth
Central bank intervention
Level of public debt
Balance of payments position
Level of foreign currency reserves
Political stability