What is a special audit?
A special audit is a type of audit that is conducted to look at a specific set of activities within an organization. It can be … Read more
Why Is Cash Flow Forecast Important For Business?
Overview A cash flow forecast helps to understand the business’s cash position in the coming accounting period. It acts as an intelligent tool to predict … Read more
Accretion Expense (all you need to know)
Accretion Expense A company has to pay an accretion expense for the fixed assets acquired under Asset Retirement Obligation (ARO) when the asset’s useful life … Read more
Steps to perform an external audit
The purpose of performing an external audit is to assure a set of financial statements. Following steps are performed by auditors for the performance of … Read more
Bank signature card – details and importance
Bank signature card plays important role identification and authorization of banking activities. Frauds and gambles, crimes, and criminals are quite common in every industry since … Read more
Capital Leases (Definition, Explanation, And Example)
Definition A capital lease can also be referred to as a finance lease. It’s is an agreement in which the lessor agrees to transfer the … Read more
Qualities of Good HR Manager
If you are opting for a career in the growing field of HR, then conquering the following skills would get you to speed up your … Read more
What Is Pari-Passu?
The term Pari-Passu is a Latin word that means “on an equal footing”. The Pari-passu charge gives an equal right to its lenders over the … Read more
What is an adverse opinion, and how it’s different from a disclaimer of opinion?
An adverse opinion is when auditors conclude that the business’s financial statement contains material misstatement. The opinion of auditors is based on the audit procedures … Read more
Journal entries for recording inventory
Inventory is an important asset for businesses, especially for the trading business as they purchase the finished products from the market and resell them by … Read more
WHAT ARE DEFERRED SHARES?
Deferred shares are mostly issued to founders of a company as compensation. And these shares do not possess any rights to a company’s assets unless … Read more
Accounting Entries for value added tax -VAT
What is value added tax-VAT? Value-added tax (VAT) is a tax that is charged at each level or point of sale where value addition is … Read more
What Is Variance Analysis
Differences between actual behavior and planned behavior are analyzed quantitatively in variance analysis. By investigating areas in which unexpected failures have occurred, this analysis serves … Read more
What is a term loan? (Explained)
Banks issue term loans to the public in exchange for specific borrowing terms and conditions. The repayment schedule of term loans is usually long term … Read more
Return on net assets (definition, explanation, example, formula, calculation, and more)
Definition Return on net assets helps to understand how the business uses its assets base to generate the return. A higher return on net assets … Read more
What’s the ordering cost?
Inventory ordering cost is a cost that is incurred when an entity places an order to acquire inventory from suppliers. This cost doesn’t only include … Read more
Importance of Financial Analysis
Financial analysis is a process of examining the financial data of an entity to assess its performance. The financial analysis of a company is used … Read more
List of account titles in accounting
Accounts titles are the building blocks for accounting, and it’s the place where accounting transactions are posted. In a double accounting system, the transactions impact … Read more
What is a qualified audit report?
The qualified audit report is the report issued by auditors when they find certain discrepancies in the audit of financial statements. In other words, during … Read more
What is audit risk, and how do auditors’ assess the risk of material misstatement?
Audit risk is the risk that auditors may not be able to detect the risk of material misstatement in the accounting record of the business. … Read more