Component auditor (all you need to know)
Definition The component auditor is the one who works on the financial information of the component. In simple words, the component auditor performs the audit … Read more
List of current assets (Definition, Formula, and Examples)
Current assets are those asset of the business that can be liquidated easily. In simpler terms, the assets that can be easily converted into cash … Read more
What is a Compliance Audit?
Definition A compliance audit is an assessment carried out, mostly by third party auditors, to examine the extent to which a company’s internal policies, procedures … Read more
What is bank confirmation letter?
Bank confirmation letter is used by the bank to confirm the nature and balance of the cash at bank. Generally, bank confirmation is used by … Read more
What are accumulated losses?
Definition Accumulated losses are losses incurred by the business in the past. These losses are adjusted against shareholders’ equity. These losses lead to a decrease … Read more
What is retained earning?
Retained earning is referred to profit retained by the business. It’s the profit that has not been distributed among shareholders; instead, it has been reinvested … Read more
What is a period cost?
Definition Period cost is the cost that is not based on the one-time transactional event rather it is incurred over specific time. These costs are … Read more
Is Human Resource Management a Good Career path?
In this era, choosing a right field for study can be a tough thing. Many people will advise you to follow your passion. The problem … Read more
What is a Corporation?
Businesses operate in different forms including sole proprietorship, partnership, LLC, and corporation. A corporation is the highest form of business organization that involves the greatest … Read more
What is test of control? (External audit perspective)
Test of control in audit is performed to evaluate internal controls implemented by the business/audit client. If the client has strong internal controls, the external … Read more
Advantages and disadvantages of corporation
Definition of corporation The corporation is a separate legal entity. It is considered a legal person who can hire employees, sue, be sued, pay taxes, … Read more
What is Paid-in capital?
Definition Paid-in capital refers to capital raised by the company against the sale of its equity. There are two components of paid-in capital. These components … Read more
What does Equal Opportunity Employer mean?
Discrimination witnessed by the employee in HR practices can generate many negative outcomes for the employee as well as for the company. To overcome this … Read more
What is audit materilaity
Definition Audit materiality means that any amount or information is material, if it has the ability to affect the decision of financial statement user. Types … Read more
Why is true up an important accounting concept?
True up in accounting is important to present fair and transparent financial information. It’s about tracking, reconciling, and correcting account balances to ensure fair and … Read more
Why is investment portfoilo diversification important?
Investment Portfolio Diversification Meaning Investment portfolio diversification is a finance term used frequently by investors and businesses. The portfolio is a combination of financial investments. … Read more
What is forensic accounting?
Definition Forensic accounting is about investigating financial fraud/crime. It involves detailed understanding of the business processes, operations, working dynamics, background checks, and many more things … Read more
What is a bonded warehouse?
Definition A bonded warehouse is licensed warehouse in the country where imported goods/products can be stored without paying import duties and taxes. It’s important to … Read more
What is throughput accounting?
Definition Businesses uses throughput accounting as an intelligent mechanism to plan production. The purpose of using this accounting approach is profit maximization. This concept is … Read more
Gross margin vs contribution margin – what is the difference?
Gross margin vs contribution margin can be an excellent metric to understand business profitability potential. What is Gross margin? Gross margin is about profit strength … Read more