1.1 Meaning and Definition of Underdevelopment Underdevelopment is a low level of development characterized by low real per capita income, widespread poverty, lower level of literacy, low life expectancy and underutilisation of resources etc. The state is the underdeveloped economy fails to provide acceptable levels of living to a large fraction of its population, thus resulting in misery and material deprivations. We need to note here that underdevelopment is a relative concept but it sustains absolute poverty. The original meaning of the term indicated that existing resources had not been exploited. The word is now close in meaning to ‘poverty’, although some oil-rich underdeveloped countries have high incomes which are enjoyed by the few. Indicators of underdevelopment include high birth rates, high infant mortality, undernourishment, a large agricultural and small industrial sector, low per capita GDP, high levels of illiteracy, and low life expectancy. 1.2 Economic de...
Interview Questions (Continued...) Income Tax What is deferred tax asset, its effect in financial statements and journal entry? Deferred tax assets are items that may be used for tax relief purposes in the future . Usually, it means that your business has overpaid tax or has paid tax in advance, so it can expect to recoup that money later. This sometimes happens because of changes in tax rules that occur in the middle of the tax year. Journal Entries for Deferred Tax Assets. If a company has overpaid its tax or paid advance tax for a given financial period, then the excess tax paid is known as defer ed tax asset. Such taxes are recorded as an asset on the balance sheet and are eventually paid back to the Company or deducted from future taxes. What is Commercial Tax? Commercial Tax, currently referred to as Goods and Services Tax (GST) in India, is a tax that is levied on locally manufactured and imported goods and services, and contributes to the...