Capitalized Commissions journal entry is to recognize an expense as asset considering the tenure of the benefits flowing from it. Commissions is a percentage on the value of the original transaction. If the transaction pertains to the sale of goods, the commission is a … [Read more...] about Capitalized commissions journal entry
How to perform the cut off procedures in audit?
Performing the cut off procedures in audit is a testing approach to identify if the recording of financial information occurs within correct period. Cut off is an audit assertion. Auditor test this assertion to obtain sufficient audit evidence that an account balance is … [Read more...] about How to perform the cut off procedures in audit?
What does SALY (Same as Last year) mean in public accounting terms?
SALY stands for Same as Last Year, an abbreviation used in public accounting. Auditors commonly use it in their work papers. SALY is used when the audit team plans to perform the same procedures as the prior year and the approach has not changed. The auditor's job often … [Read more...] about What does SALY (Same as Last year) mean in public accounting terms?
Understated vs Overstated accounting
Understated vs Overstated accounting is a scenario in which financial records reflect false information. The Primary Purpose of accounting is to record transactions so as to reflect the true and fair picture of profits, assets, debts, and capital. However, the terms … [Read more...] about Understated vs Overstated accounting
What do you think is the Primary Purpose of accounting is to?
Accounting is the science of recording the financial transactions that occur in a business. The Core accounting fundamentals don’t differ by industry or business nature. Think of Math's Multiplication tables, which don’t differ for each branch. The primary purpose of … [Read more...] about What do you think is the Primary Purpose of accounting is to?