Definition: Current assets are the group of liquidity assets or resources controlled by the entity and have a useful life for less than one year. Some current assets are expected to be used and converted into cash for less than one year. The current assets include petty cash, cash on hand, cash in the bank, […]
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Definition: The declining balance or reducing balance depreciation method considers the value of assets that are largely used or highly contribute to operation at the beginning and then subsequently decline. That means depreciation expenses that should be charged to certain types of assets are high at first and then low subsequently. This is the main
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Explanation: The diminishing balance depreciation method is one of the three depreciation methods mentioned in IAS 16. This kind of depreciation method is said to be highly charged in the first period, and then subsequently reduce. This is because the charging rate is applying to the Net Book Value of Assets and the Net Book
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Definition: The straight-line depreciation method is one of the most popular depreciation methods used to charge depreciation expenses from fixed assets equally period assets’ useful life. This method is quite easy and could be applied to most fixed assets and intangible fixed assets. The straight-line depreciation method considers assets used and provides the benefit equally
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Definition: Audit sampling is the application of audit procedures to less than 100% of the total population and all the items in the population have the same chance to be selected. This is to ensure that the items selected represent the total population which enables auditors to draw their conclusion and express their opinion based
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Definition: Audit reasonableness testing is the audit technique or procedure used to assess the reasonableness of accounting transactions, events, or balances that are recorded in the financial statements by auditors by using two or more different sources of data or information to predict accounting transactions or events. The audit reasonableness test is also one of
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Overview: Substantive testing or substantive procedure is the technique used by the auditor to obtain the audit evidence in order to support the auditor’s opinion. Substantive testing is part of the substantive audit approach and is performed at the execution stage of the audit. It is different from to test of control. The number of
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Definition: An audit test of controls is a type of audit examination on the internal control of an entity after they perform an understanding of internal control over financial reporting to assess whether the control is efficient and effective and whether the auditor could rely on those control or not for their audit purpose. Those
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Definition: An audit committee is a group of non-executive directors set up by and work under the supervision of the board of directors of an entity. This committee is sometimes set up as the requirement of law, and regulation of the country or jurisdiction where the entity operating in, and sometimes is set up as
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Overview: The following is the review of best selling managerial accounting book of all time, and we things you should have some of them if you are looking for the material accounting book. We will discuss deeply on this topic. But before we recommend you the book, we should provide some explanation about managerial accounting
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