What are substantive procedures in auditing? Substantive audit procedures are critical in determining the level of risk and control weaknesses in an entity. A substantive audit procedures refers to audit procedures that are performed to provide a reasonable basis for evaluating whether there is a reasonable possibility that material misstatements exist due to fraud or …
A predetermined overhead rate is a cost of doing business that includes costs of the fixed assets, such as property or buildings, used in manufacturing. At the beginning of the accounting period, a predetermined overhead rate is determined by dividing the predicted manufacturing overhead by the anticipated activity base. The predetermined overhead rate plays an …
A commercial bakery has recorded sales (in dozens) for three products, as shown below: a Based on the Plot for each data set, predict orders for the following day for each of the products using an appropriate naive method. b. What should the use of sales data instead of demand imply? Answer & Explanation ~ From the figure i, Blueberry …
Even though most of the day to day accounting activities in our everyday life often go unnoticed, the role of accounting cannot be underestimated. Accounting is an essential part of living; it might metamorphose but the core principles remain the same. The critical role that accounting plays in all areas of life is evident everywhere, …
Why is Accounting Important in Everyday Life? In Personal Life and Business Read More »
Accounting refers to all the work done and processes utilized to ensure that records reflect the true picture of the financial status of an entity. It involves recording transactions systematically, reporting them through appropriate channels and analyzing all related financial activities that an individual, business or company has undergone over a certain period of time. …
Definition, What is Accounting, and Accounting Equation Read More »
The accounting principles refer to the set of rules and regulations that all companies must comply with when they are declaring their financial data. For beginner fund accounting students or those who have a hard time understanding the concept, this topic might sound complicated and even daunting. It is important to therefore consider receiving help …
Generally Accepted Accounting Principles (GAAP) – Explained Read More »
