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Statement of Comprehensive Income: Definition | Types | Explanation

Definition: Comprehensive Income or Statement of Comprehensive Income is a financial performance statement that listed down all profit and loss and other comprehensive income of entity for the period of time. It usually prepares and presents monthly, quarterly, and annually on a comparative basis. That means if the company prepares the quarterly statement, its comparative […]

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What Are the Three Ways of Matching? (Explained with Example)

Account Payable

Three ways matching is the control that put in the accounting department especially in payment function to ovoid overpayment to suppliers. That is the main purpose of this internal control function. There are three main documents and functions involved. First is the purchase order, second is the invoice, and the last one is goods received

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Other Comprehensive Income: Overview | Example | Explanation

Financial Statements

Definition: Other comprehensive income as defined by IFRS comprises items of income and expense (including items that may not and will not reclassify into income statement) that are not allowed to recognize in profit or loss. Currently, Statement of Profit or Loss and Other Comprehensive Income is allowed by IFRS to be presented in two

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Tips to read and analyst income statement like experts

Financial Statements

Overview: The income statement shows the information related to revenues, expenses, and profits of an entity for a specific period. That is what the information you can obtain from the income statement. You can use this information to analyst and assess the performance of the entity again similar size in the industry or other purposes.

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What Is An Interim Audit? Overview And Benefit

Audit

Overview: An interim audit is part of audit work or audit strategy where audit testing is performed on interim financial statements. This is part of the audit strategy when the auditor wants to reduce audit works at the annual audit or final audit testing. Sometimes an interim audit is also performed as the result of

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What Does Materiality in Audit and Accounting?

Audit

Definition: The materiality concept is used in both the accounting context for the preparation and presentation of financial statements and in the auditing context to assess the material of misstatements contained in the financial statements. Even though the materiality is used in a different context, they both respect the same principle: Misstatements or omission is

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Audit Testing: Interim and Final Audit test

Audit, Audit Procedures

Overview: Final audit testing is part of the audit test on the financial statements which is normally performed at the year-end or at the time after the client produces its financial statements. To let you get a better understanding of this, let me give you the big picture of the audit test. After this, you

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4 Types of Auditor’s Reports: Types of Audit Reports, Advantages, and Limitations

Audit, Audit Opinion

Definition: The audit report or auditor is the report that contains the audit’s opinion, which independent auditors issue after they examine the entity’s financial statements and related reports. These include financial statements, management accounts, and management reports. Or other reports like compliant reports. Mostly, those reports are issued based on auditors’ professional examination against the

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Accounts Receivable Turnover Ratio Analysis: Overview, Formula, And Analysis

Account Receivable, Financial Ratios

Overview: Accounts Receivable Turnover is the efficiency ratio that directly measures the performance of receivable collecting activities over the year. It uses to analyze the number of times that net credit sales during the period are collected based on the relationship between net credit sales during the period and averaged accounts receivable at the end

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Are Inventories Current Assets? (With Detail Explanation)

Current Assets, Inventories

Definition: Inventories are classed as current assets in the entity’s balance sheet. They normally include a group of liquid assets including raw materials, work in progress, and finished goods which are expected to be converted into cash or cash equivalent within 12 months. The three main common examples of the entity’s financial statements are income

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