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
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 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 is simple and straightforward. There are two possible scenarios when you make sales. The sales may be on credit and on … Read more
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 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
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
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
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
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
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
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
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
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
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
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
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 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 meaning NOPAT, ‘Net Operating Profit after Tax’ is a profitability metric that assesses how much cash could be given to … Read more
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
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