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
What is Asset under Management? (Detailed understanding)
Asset under management meaning Asset under management means the market value of total investment managed by fund/entity/organization. This value keeps changing with the change in … Read more
Difference between Sustainable Growth and Internal Growth Rate
The concepts of sustainable and internal growth rates play a major role in determining the fate of any business. Both concepts are growth-related and closely … Read more
Virtual currency (detailed aspects)
Virtual currency is the second name of cryptocurrency. It’s a digital representation of the stored value, and unit of account, and can also be used … Read more
Detailed understanding of GST/HST on consignment sale – (Canada perspective)
This article is highly relevant if you sell on a consignment basis. Let’s have a detailed understanding of the applicable tax regulations on the consignment … Read more
Workplace safety and insurance board (WSIB) – Ontario chapter
WSIB plays a crucial role in managing health occupation and safety system at the provincial level. It’s funded by employers and is helpful in following … Read more
Is deferred revenue income or liability?
Deferred revenue / deferred liability: Deferred revenue, also known as “unearned” or deferred income, is any revenue we collect from our customers before earning it. … Read more
What is a average true range, and how to calculate it?
Average true range meaning: The average true range (ATR) is a technical analysis indicator; it aims to give an idea about the price volatility of … Read more
What is net asset value and how to calculate it?
Definition: Net Asset Value (NAV) represents the value of an enterprise. It’s calculated by deducting total liabilities from the company’s total assets. The logic is that … Read more
What is a credit default swap?
Concept for credit default swap – CDS A credit default swap is a financial derivate. Lenders use it to transfer the risk of default on … Read more
What is year on year comparison meaning?
Definition: Year-on-year (YOY) is a method used in comparing time series data per annum. It is a technique of evaluating two or more measured events … Read more
Market penetration and market skimming price
Market penetration and market skimming price are well known terms in the field of finance and economics. These terms are used for the products and … Read more
Can I transfer crypto from Robinhood to Coinbase?
Coinbase and Robinhood, both located in the United States, are two convenient and easy to use services which enables the newcomers to purchase and sell … Read more