Definition of Internal audit: This is a process of evaluating and reviewing an organization’s operations. It is including its internal controls, risk management, financial and accounting systems, and compliance with laws and regulations. The primary objective of internal audit is to provide independent and objective assurance to the organization’s management and stakeholders. That the organization’s… Read More »
Are derivatives assets or liabilities Are derivatives assets or liabilities, Derivatives can be both assets and liabilities, depending on their specific characteristics and the context in which they are hold. Derivatives are financial instruments that derive their value from an underlying asset, index, or reference rate. Derivatives as assets: In some situations, derivatives can… Read More »
Internal auditor Internal auditors play a vital role in ensuring the integrity, efficiency, and effectiveness of an organization’s operations. While many people are familiar with external audits, internal auditing is equally crucial in maintaining the financial health, operational efficiency, and regulatory compliance of a company. This blog will explore what internal auditors do, their responsibilities,… Read More »
Difference between current assets and current liabilities The measure that reflects the difference between current assets and current liabilities is called working capital. Working capital is calculated by subtracting the total current liability of a company from its total current asset. It is an important metric for businesses to monitor, as it indicates their ability… Read More »
Two-way invoice matching process Invoice matching is a crucial component of the accounts payable process. It helps businesses maintain accuracy in their financial records and ensures they are paying only for the goods or services received. Among the various types of invoice matching, the two-way invoice matching process is widely used for its simplicity and… Read More »
Meaning of accountancy Accountancy is a field of study and practice that deals with the measurement, processing, analysis, and communication of financial information about a business or organization. It involves the recording, classifying, summarizing, and interpreting of financial transactions to provide useful information for decision-making.The meaning of accountancy is very clear. To visit: https://www.incometax.gov.in Accountancy… Read More »
Capital structure Capital structure refers to the composition of a company’s sources of funds, including debt, equity, and other forms of financing. It represents the way a company finances its operations, growth, and investments. The way a company finances its operations, known as its capital, is crucial as it affects the company’s financial performance, level… Read More »
Capital Gains and Capital Asset Capital Gains refers to the profit made by an individual or an entity when they sell a capital asset, such as property, stocks, or mutual funds, at a higher price than its purchase price. A capital asset is any asset that an individual or an entity owns for personal or… Read More »
Working capital management Working capital management refers to the administration of a company’s short-term assets and liabilities to ensure it operates efficiently and maintains adequate cash flow. It plays a crucial role in a company’s financial health by balancing liquidity (the ability to meet short-term obligations) with profitability. By optimizing working capital, businesses can sustain… Read More »
Examples of contingent liabilities Contingent liabilities are potential obligations that may arise in the future, depending on the outcome of a future event. Examples of contingent liabilities include: To visit https://www.mca.gov.in 1.Lawsuits or legal claims against the company 2.Product warranties or guarantees that may need to be honored in the future 3.Environmental liabilities, such as… Read More »
