The role of auditors in a Limited Company
Auditors play a crucial role in public companies, and their responsibilities may vary depending on the company. In some cases, auditors may be responsible for checking financial statements and other reports to make sure they are accurate. Other times, auditors may be responsible for reviewing products or services offered by public companies to ensure they […]
Cost-Volume-Profit Analysis: Advantages and Disadvantages
Cost-Volume-Profit analysis is a financial management tool helping firms understand the relationship between costs, sales volume, and profitability. By analysing how changes in costs and sales levels affect a company’s profit, CVP analysis supports strategic decision-making related to pricing, cost control, product mix, and market expansion. In this post, you will learn about the disadvantages […]
Meaning of Purchase Consideration [Amalgamation Accounting]
In business purchase accounting, the meaning of purchase consideration is the price that is paid for the acquisition of another company. This price can be paid in cash, shares, or other assets. The purchase consideration is used to determine the value of the assets and liabilities acquired in the purchase. Limited liability companies often purchase […]
Spa Equipment Leasing as a Financial Business Solution
The beauty salon industry is on the rise as many individuals prefer to visit these places regularly to maintain their hairstyles, hair colouring, nails, etc. Modern beauty spas are laced with advanced technology such as machines to use for manicures and pedicures, shampooing and hair massaging, shaving, and much more. Due to the emerging needs […]
Financial Ratios and Its Importance to Decision Makers
Financial ratios are one of the most popular financial analysis tools. It works as a bridge between technical and non-technical users of financial statements. Financial ratios might be beneficial when evaluating the financial health of various companies. Several people are interested in studying financial reports such as annual and interim reports to decide whether or […]
What is a Trial Balance? | Objectives and Rules
A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization’s general ledger accounts. Whenever a trial balance is prepared, its total on the debit side should tally with the total on the credit side. An agreement of both sides indicates a reasonable (but not conclusive) accuracy of […]
What Are Valuation Principles in Accounting?
Valuation refers to determining the fair value of an entity’s assets or liabilities, which is crucial in assessing its overall worth. Valuation principles are critical to the accounting profession, as they provide a foundation for measuring and reporting the financial health of businesses. These principles help to ensure that financial statements are accurate and consistent. […]
What is the Concept of Measurement in Accounting
Measurement in accounting process refers to determining the value of the transactions so that they are recorded and properly in books of accounts. Measurement is a very basic concept in accounting because it is the very basic foundation of the accounting system. Measurement in accounting describes and explains in what manner the financial transactions have […]
What is Dual Aspect Concept in Bookkeeping?
According to the dual aspect concept, there are two aspects of accounting, one represents the assets of the business, and the other is the claim against these assets (i.e. capital and liabilities). The concept states that these two aspects are ALWAYS equal to each other. Due to this reason, any accounting entry affects at least […]
What are the Various Subfields of Accounting?
Accounting extends far beyond the preparation of financial statements. At its core, it embodies a systematic approach to capturing, recording and analyzing financial information to facilitate informed decision-making by various stakeholders. This core function branches out into several specialized areas, each addressing specific needs and offering distinct career paths. To understand the meaning of accounting […]