Terms Definitions 1. Accounts receivable a. The party to a credit transaction who takes on an obligation/ payable. 2. Other receivables b. The party who receives a receivable and will collect cash in the future. 3. Debtor 4. Notes receivable c. A written promise to pay a specified amount of money at a particular future date. 5. Maturity date 6. Creditor d. The date when the note receivable is due. e. A miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. The right to receive cash in the future from customers for goods sold or for services performed.

Q: Explain the difference between the terms FOB destination and FOB shipping point.

A: Inventory at the end of financial year to be shown in balance sheet , should means the inventory ,…

Q: Define the term Approval of payment requests?

A: The payment is an amount of money paid by the customer to the seller in exchange of goods and…

Q: Provide examples of how finacial statments are useful and or how they are used?

A: Financial statements refer to such statements which report the profitability and the financial…

Q: What is the basis for distinguishing between operating and nonoperating items?

A:

Q: Distinguish between assets and liabilities.

A: Step 1 Assets can be defined as the resources owned by the organization which is capable of…

Q: Define the term nonmonetary assets.

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: What are the valuing inventories?

A: Cost:   It is the economic value incurred by an organization to manufacture a product or to render a…

Q: Describe direct and indirect mehods of reporting.

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Define the term net assets.

A: Net assets: The net assets are the difference between the total assets and the total liabilities of…

Q: What is meant by noting of bill ?

A: Meaning of Noting of BillWhen a bill (draft or promissory note) has been presented for acceptance or…

Q: Define trademarks.

A:

Q: Define receivables and understand issues related to their recognition.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Define bill-and-hold arrangement with example.

A: Bill on hold: Bill on hold transaction specifies that shipping of the product is not done by the…

Q: Describe the accounting for correction of errors.

A: The accounting for correction of errors will be explained:

Q: How is RI calculated?

A:

Q: What are operational assets? Give example?

A: Operational assets: Operational assets are those assets acquired for use in the day to day…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.