Topics in Business StudiesBusiness Studies: What is Business Studies and Business? Management: Elements of Management What is Management? Importance of Management Advantages and Disadvantages of Air Transport Advantages and Disadvantages of Rail Transport Methods of Payment: Cheque - What is a Cheque? Cheque: Types of Cheque Cheque: Characteristics of Cheque Advantages and Disadvantages of Cheque Advertising and Types of Advertising Advantages and Disadvantages of Road Transport Advantages and Disadvantages of Water Transport Consumer Protection - Agencies of Consumer Protection Consumer Right and Protection Methods of Payment: Credit Cards and Debit Cards Methods of Payment: Bank Notes and Coins | Characteristics of Legal Tender Scope and Importance of Business Studies Business Structures: Sole Proprietorship, Advantages and Disadvantages Clerical Staff: Grades, Qualities and Functions of a Clerical Staff Principle of Double Entry: Characteristics, Advantages, Disadvantages
Academic Questions in Business Studies
Which of the following is not a Right of Consumer Protection?
Which of the following is NOT a government agency of consumer protection?
Define Consumer Protection.
In buying and selling, the retailer will usually operate from the stall while the wholesaler operates from the _____.
Just as we have two sides to a coin, so also are there two sides to every transaction.
For instance, in order to purchase a phone from a local store, you will need to pay some money to the store attendant before you can own the phone.
The above simple transaction has two sides from the perspective of the buyer (you) and the seller (store attendant).
Your money would have been decreased by the amount you paid for the phone while the seller would be short of a phone.
Conversely, you will own a new phone while the seller’s cash balance would have increased by the amount you paid for the phone.
If the two parties were to take a record of the transaction, each of their record will have two sides.
From the buyer’s record; one half (Debit side of the account) will reflect an increase in expense because he or she paid out money to own the phone while the other half (Credit side of the account) will reflect an increase in asset (the phone becomes an increase in asset for the buyer).
From the seller’s record, one half (Debit side of the account) will reflect an increase in labiality due to the resultant absence of the phone from its sale while the other half (Credit side of the account) will reflect an increase in income because money was received from the sale of the phone.
Asset accounts are debited when they are increasing while Liability accounts are credited when they are increasing.
Expenses accounts are debited when they are increasing while Income accounts are credited when they are increasing.
Also, think of credit as "getting paid". For instance, if your bank account is credited, that will imply that money has been paid into it.
Think of debit as "spending money". For instance, whenever you purchase something, your account will be debited.
From the above explanations, a transaction involving two parties of account is called Dual Entry of Transaction.
On the debit side (Dr) is the account receiving the benefit while that which gives the benefit appears on the credit side (Cr) of the account.
The process of keeping an account with a debit and credit side is referred to as the Double Entry System.
An accounting system that is based on this principle; that for every debit entry made, there must always be a corresponding credit entry is known as the Principle of Double Entry or Duality Principle.
Without the concept of double entry, account records will only present or show a partial view.
Sometimes, the confusing aspect of writing the dual entry account is the uncertainly of what to write on the debit and credit sides. This should not be a problem because an understanding of the characteristics or features of debit and credit sides of accounts will put you through.
On the DEBIT side; there is an increase in expense. On the CREDIT side; there is a decrease in expense.
On the DEBIT side; there is an increase in asset. On the CREDIT side; there is a decrease in asset. (An asset is something of value)
On the DEBIT side; there is a decrease in income. On the CREDIT side; there is an increase in income.
On the DEBIT side; there is a decrease in liability. On the CREDIT side; there is an increase in liability. (Liability is an amount or resources owed)
On the DEBIT side; there is a decrease in equity. On the CREDIT side; there is an increase in equity.
Two parties are required: They are the giver and the receiver:
There are two sides o the account (Duality of account): Debit and Credit sides.
The Exchange is equal in amount: In any transaction, the amount of money given is equal to the amount of money received.
Equal Result: The sum or totality of debit is equal to the totality of credit.
It is a scientific and complete accounting system
There is completeness of account transactions.
It can be used to determine the profit or loss of a company.
It can be used to determine the number of assets and liability.
It can be used to control a company’s expenditure.
It helps businesses to run smoothly by giving accurate information.
It is not difficult to implement.
It helps a business to understand commodity prices.
It prevents account manipulation.
It can be useful as an accounting reference.
Increased usage of books of accounts.
The accounting process can become complex.
Mistakes are possible (No one is above mistake).
Recruitment and payment of a professional may be required.
It can be time consuming.
Purchase of phone
Debit New Phone owned Increase in Asset
Credit Money Paid Out Decrease in Asset
Interest received on a bank deposit account
Debit Money deposited Increase in Asset
Credit Income generated Increase in Income
Payment of School Fees
Debit School Fees paid Increase in Expense
Credit Lectures received Increase in Equity
Receipt of bank loan
Debit Cash received Increase in Asset
Credit interest to pay Increase in Liability
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Amazing facts in Business Studies
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NOTABLE POINTS IN Business Studies
Consumer protection refers to the ways or methods through which consumers enjoy maximum satisfaction from the goods they buy and services rendered to them.
The agencies of consumer protection assists in protecting the consumer rights. These agencies may also be referred to as the organs of consumer protection. Basically, we have three of them, they are:
One of the responsibilities of the government of every nation is to set up agencies or organizations that will protect the interest of the consumers and invariably, the people.
Below are some of the Government Agencies of consumer protection
- National Drug Law Enforcement Agency (NDLEA)
- National Agency for Food, Drug Administration and Control (NAFDAC)
- Consumer Protection Council (CPC)
- Rent Tribunal
- Ministry of Health
- Ministry of Commerce
- Ministry of Transportation
- Ministry of Environment
- National Wages and Salaries Commission