Vouching and Tracing are auditing techniques What's the purpose? Vouching begins by taking a sample of transactions and examining their supporting documents to confirm they are genuine. Tracing, however, tracks transactions from their source documents through … [Read more...] about Vouching Vs Tracing
Topside Entry and its Accounting
A topside entry is an accounting journal entry used to correct or adjust the GL Accounts. Topside entries will not be recorded in the Sub Ledgers. Those are posted directly in the General ledgers Why record a topside entry? It adjusts the account balances without … [Read more...] about Topside Entry and its Accounting
Discount received journal entry
Discount received Journal Entry is to record a gain. It's a benefit to the business In Other words, that's a non-cash inflow. We'll understand each of the steps involved in recording it. Discount Received Journal Entry steps Step 1 We need a separate GL … [Read more...] about Discount received journal entry
Wasting Assets (Meaning, Example & Estimate Useful Life)
Wasting assets are a type of asset or resource that, when used, is gradually consumed and eventually results in its complete depletion. That’s quite common, right? No Exceptions to this point. All assets will lose its value for continued usage. The best example is … [Read more...] about Wasting Assets (Meaning, Example & Estimate Useful Life)
Cash Coverage Ratio
The cash coverage ratio is an important metric that helps to measure the soundness of a company's financial position. In other words, the Cash Coverage Ratio helps to understand whether the entity can meet all its interest expenses. What’s the Cash Coverage ratio(CCR)? The … [Read more...] about Cash Coverage Ratio