Single Entry and Double Entry Accounting

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Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c
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ORGANIZATIONAL COMMUNICATION

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Formal versus Informal Communication
1.  Formal communication refers to communication that follows the official chain of command or is part of the communication required to do one’s job.
2.  Informal communication is organizational communication that is not defined by the organization’s structural hierarchy.
a. Informal communication systems permit employees to satisfy their needs for social interaction.
b.  Informal communication systems can improve an organization’s performance by creating alternative, and frequently faster and more efficient, channels of communication.
Direction of Communication Flow
1.  Downward communication—flows from a manager to employees and is used to inform, direct, coordinate, and evaluate employees.
2.  Upward communication flows from employees to managers
a.  Upward communication can be used in order to keep managers aware of how employees feel about their jobs, their coworkers, and the organization in general.
b.  The organizational culture influences the extent of upward communication. A climate of trust, respect, and participative decision making will encourage considerable upward communication.
A highly mechanistic and authoritarian environment will severely limit upward communication in both style and content.
3.  Lateral communication takes place among employees on the same organizational level.
4.  Diagonal communication is communication that cuts across both work areas and organizational levels.
a.  The increased use of e-mail facilitates diagonal communications.
b.  Diagonal communication has the potential to create problems if employees don’t keep their managers informed.

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