Asset Retirement Obligation (ARO) means Establishing an asset can damage the Land. So, this obligation can be for the removal of hazardous materials after asset retirement. Why honor this obligation? It’s legally binding. That’s a future obligation. So, … [Read more...] about Asset Retirement Obligation Journal Entry
Accounts receivable interview questions
Accounts receivable is a crucial current asset of the business. Are you wondering why it is? The answer is simple. It's just one step behind from being converted into money. Entities need liquidity to sustain in the business irrespective of the form of money (either … [Read more...] about Accounts receivable interview questions
Capitalized commissions journal entry
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?