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
Duties and responsibilities of an external auditor
Duties and responsibilities of an external auditor External auditors must be independent of the company to ensure an effective application of auditing techniques. They are … Read more
External audit certifications
External audit certifications are considered to be fairly difficult. However, a promising Career can be expected once you have qualifications and reasonable experience. Here is … Read more
The role of Compensation and benefits in Employees Motivation
What is Compensation and Benefits? Compensation, sometimes referred to as remuneration, is a frequently used term in HR to refer the monetary rewards given to … Read more
External audit (objectives and reporting)
Definition of External Audit The company’s auditors perform an external audit to assess the accuracy and completion of financial statement. It’s defined as the audit … Read more
Why Financial Independence Is Important
Freedom comes with financial Independence. You must declare your financial Independence. In a nutshell, it would mean earning enough money to live a comfortable lifestyle … Read more
Top five external audit companies in the world
Here is the list of the top five external audit companies globally. 1. Deloitte Touche Tohmatsu Limited Deloitte is one of the big four audit … Read more
Source documents (detailed understanding)
Original documents containing details about a business transaction are referred to as source documents. The source document contains vital information such as the date and … Read more
What is an external audit?
An external audit is a process of reviewing the financial record of the business. It’s a regulatory requirement and is conducted by a professional accountant. … Read more
What are fictitious liabilities (Detailed explanation)
Definition Fictitious liabilities are the ones that are not real or true and are just imaginary or fabricated figures that appear in accounting records. The … Read more
Scrap inventory accounting
Scrap inventory accounting can be done by following three methods. Recording as income Deduction from the cost of production Deduction from the cost of the … Read more
What are Drawings in Accounting?
Definition Drawings in accounting refer to the withdrawal from a business by its owner in the form of cash or any other asset aimed to … Read more
Monetary Unit Principle
The monetary unit principle states that all the transactions and business events should be recorded in currency form. It means that a business can record … Read more