Indian Economy Transition Quiz

Indian Economy

• The economic model followed by successive Indian governments from 1947 until 1991 was a mixed economy with a strong emphasis on central planning and government control.
• The adoption of broad economic liberalization in India in 1991 was led by the severe balance of payments crisis, which forced the government to adopt a new economic policy.

India's Global Economic Position

• As of 2022, India accounts for around 3.3% of the global economy in nominal terms.

Impact of COVID-19

• The COVID-19 pandemic had a significant impact on India's economy, with the country experiencing a sharp decline in GDP growth, widespread lockdowns, and a massive disruption to global supply chains.

GDP Growth Rate

• The average annual GDP growth rate since the start of the 21st century has been around 7-8%.

Accounting Objectives

Management Accounting

• The main objective of management accounting is to provide financial information and analysis to internal stakeholders to support decision-making and achieve organizational goals.

Financial Accounting

• The primary focus of financial accounting is to provide financial information to external stakeholders, such as investors and creditors, to help them make informed decisions about the organization.

Recording Financial Transactions

• The most common system used for recording financial transactions is the double-entry accounting system.

Tax Accounting

• Tax accounting primarily focuses on preparing and filing tax returns, as well as ensuring compliance with tax laws and regulations.

Recipients of Financial Information

• The primary recipients of information from financial accounting are external stakeholders, including investors, creditors, and regulatory bodies.