December 14, 2021

Nature of Accounting Policies Accounting policies refer to the specific accounting principles and the methods of applying those principles adopted by the enterprise in the preparation and presentation of financial statements. There is no single list of accounting policies which are applicable to all circumstances. The different circumstances in which enterprises operate in a situation […]

The concept of true and fair is a fundamental concept in auditing. The phrase “true and fair” in the auditor’s report signifies that the auditor is required to express his opinion as to whether the state of affairs and the results of the entity as ascertained by him in the course of his audit are

The concept of materiality is fundamental to the process of accounting. It covers all the stages from the recording to classification and presentation. It is, therefore, an important and relevant consideration for an auditor who has constantly to judge whether a particular item or transaction is material or not. AAS13 on Audit Materiality lays down

Cost Accounting Terminologies Cost Cost is a measurement of the economic sacrifice made to achieve a given objective. Thus, it is a measurement of the amount of resources sacrificed in attaining a specified goal. In case of a product, cost represents the monetary measurement of resources used to mention but a few materials, labor and

Scope of Cost Accounting Cost accountants interpret results and report them to management and provide analyses that assist decision-making in the following departments of a firm: a) Manufacturing Cost accountants work closely with production personnel to measure and report manufacturing costs. The efficiency of the production departments in scheduling and transforming materials into finished units

Importance of Cost Accounting (purpose/objectives) Ascertainment of costs With the help of cost accounting tools, an entity is able to ascertain the cost of producing goods and providing services. Such costs include the cost of materials, cost of labour as well as the cost of operation overheads. Control of costs Cost accounting tools not only

COST ACCOUNTING Introduction This topic introduces the basic concepts of cost accounting, terminologies and distinguishes cost accounting from financial accounting. It is also aimed at making it clear on what cost accounting is all about and introduce some of the terminologies employed throughout this course. Accounting Accounting is about giving account of various transactions, that

Professional accountants have an important role in society. Investors, creditors, employers and other sectors of the business community, as well as the government and the public at large rely on professional accountants for sound financial accounting and reporting, effective financial management and competent advice on a variety of business and taxation matters. The attitude and

The field of auditing as a discipline in simple words involves review of various assertions; both in financial as well as in non-financial terms, with a view to prove the veracity of such assertions and expression of opinion by auditor on the same. Thus, it is quite logical and natural that the function of audit