What is credit repair and how to do it?
Credit repair refers to corrections in the credit report. If there is any error in your credit report, these errors are reported to the credit … Read more
Tips for personal finance management
Personal finance management might challenge you today. However, if you accept this challenge and move in the right direction, it pays off with a higher … Read more
Accounting for short term deposit
The accounting for short term deposits depends on if you have received/paid the deposit. So, there can be two situations. You have paid the deposits. … Read more
Accounting for inventory
Accounting for inventory involves different items like accounting for purchase, accounting for work in process, accounting for finished goods etc. Let’s go through each of … Read more
Accounting for sales/sales return
Accounting for sales/sales return is simple and straightforward. There are two possible scenarios when you make sales. The sales may be on credit and on … Read more
Accounting for long term deposit
A long term deposit is when you pay/receive deposit for a time of more than twelve months. The accounting treatment for the long term deposit … Read more
Accrued wages in accounting
Accrued wages are the wages that an employee has worked for. However, the company has not paid them as of the accounting period end. At … Read more
statuatory audit vs.internal audit
Following are the facts for statuatory audit vs.internal audit. Statutory audit Internal audit It is required by law. The provisions of the company ordinance require … Read more
Limitations of Cash Flow Statement
Following are some of the well-known limitations of the cash flow statement. 1-Liquidity assessment Although cash flow statement shows the cash status of the company, … Read more
Audit VS. Assurance
An audit is a process of checking accounting and other information given in the financial statement. For instance, the closing balance of property, plant and … Read more
Qualities of a good auditor
Broadly, there are three qualities of a good auditor, these include knowledge on financial principles & audit processes, certain personality characteristics, and experience in the … Read more
Scope of an audit
The scope of an audit means extent of work the auditor needs to perform. If the scope of an audit is extensive, the auditor needs … Read more
What is the Periodicity assumption in accounting?
Periodicity assumption states the company needs to report financial information in such a manner that the current period can be compared with the previous periods. … Read more
Rolling budget (All you need to know)
A rolling budget is when the budget is continuously updated with most recent changes from period to period. For instance, you have a budget for … Read more
Types of audit risk
There are three types of audit risk. These types of audit risk include inherent risk, control risk, and detection risk. 1-Inherent risk The nature of … Read more
What is audit risk and how it’s assessed
Definition Audit risk is the risk that auditors might issue a clean audit report when financial statement are materially misstated. The material misstatement in the … Read more
What is operational gearing?
Operational gearing measures the proportion of fixed cost compared to the total cost. If the proportion of the fixed cost is higher than the total … Read more
What is controllable and uncontrollable cost
Controllable cost: Controllable cost is a type of cost/expense that can be influenced by decisions of authority/personnel in an organization. In simple terms, the controllable … Read more
Vouching vs tracing
Vouching and tracing play a number of similar roles in auditing, but the key difference is the use of these auditing procedures to collect audit … Read more
Net operating profit after tax
Net operating profit after tax meaning NOPAT, ‘Net Operating Profit after Tax’ is a profitability metric that assesses how much cash could be given to … Read more