Franchising vs. licensing

 Licensing and franchising are sometimes confused to be the same. But they are different, in simple words licensing typically deals with the businesses of products … Read more


Accounts Receivables Factoring

Definition Accounts receivables factoring is designed to finance ventures without increasing leverage in the business. It involves selling of invoices to third parties at discount … Read more

retention ratio

What is the Retention ratio?

Definition The retention ratio reflects proportion of earnings retained by the business. These are the earnings that have not been distributed among shareholders. Instead, these … Read more

corporate governance

Corporate Governance

Definition of corporate governance Corporate governance refers to a system of governance. It aims to monitor and control strategic aspects of the board activities, decision … Read more

Conversion Cost in Accounting

Definition Conversion cost is the cost required to convert raw material into finished goods. It includes direct labor and manufacturing overheads. Explanation Whatever product you … Read more


What is an audit program?

Definition The audit program is a detailed action plan for the audit team. It sets a direction for an audit team to perform audit procedures. … Read more

Qualities of audit evidence

Auditors collect audit evidence during fieldwork. If audit evidence is sufficient and appropriate, they issue a clean audit report. Sufficiency of audit evidence refers to … Read more