Why Is True Up An Important Accounting Concept? What Is True-Up? True-up is an accounting process that reconciles the differences between actual and estimated figures by making adjustments to the accounting records at the end of the accounting period. The process of true-up helps to enhance the accuracy and credibility of the accounting balances. After … Read more
What Is A Cut-off Concept In Audit? Cut-off Date In accounting, a cutoff date is a predetermined point in time used to separate transactions that are recorded in different accounting periods. Typically, this cutoff date is the end of a month, such as January 31 in this example. It is particularly important during inventory counts … Read more
Return On Net Assets Return on net assets is a metric which enables investors to measure how efficiently a company is using its assets to generate profits. It is calculated by adding fixed assets and net working capital, and then dividing by net after-tax profits. Net working capital is determined by subtracting current liabilities from … Read more
What Is Going Concern Assumption? The going concern assumption is an accounting principle that assumes an entity will remain in business for the foreseeable future. It allows the deferral of certain expenses to be taken at a later period. This assumption is generally accepted unless there is significant information that suggests otherwise, such as an … Read more
Qualities of Good HR Manager Are you considering a career in Human Resources? If so, you should know that being a successful HR Manager requires more than just knowledge of the field. It takes certain qualities and characteristics to be able to handle the responsibilities of this job. In this article, we will explore the … Read more
Content Of Permanent Audit File Audit working paper Audit working papers are an essential component of the audit process, providing evidence and a basis for the auditor’s conclusions and opinions. These papers are created during an audit engagement and contain the evidence and procedures obtained by the auditor during their work. The purpose of these … Read more
Audit Report Modification Audit Opinion An auditor’s opinion is an important element in an audit report, as it serves as the professional opinion of the auditor on the financial statements. Generally, there are four types of auditor’s opinions. An unmodified opinion, also known as a clean opinion, is the most favorable type of opinion. It … Read more
What Is A Credit Default Swap? A Credit Default Swap is a financial agreement between two parties that facilitates the transfer of risk from one party to the other in the event of a payment default. The seller of the CDS compensates the buyer in the event of a payment default, while the buyer makes … Read more
GAAP And Principles In the world of business, there are a variety of accounting principles and practices that must be followed. These are known as Generally Accepted Accounting Principles (GAAP). GAAP provides a framework for companies to follow in order to ensure accurate and reliable financial statements. Without these principles in place, it would be … Read more
Fictitious Assets Fictitious assets are a type of deferred revenue expenditure that provides a long-term benefit to the company, rather than being fully written off in the accounting period. They are expenses or losses that are spread over multiple years instead of being accounted for in a single year. As such, they can help to … Read more