Statutory audit focus is to verify the financial transactions in books of accounts. The respective laws and regulations govern performing these audits. For instance, the SEC calls for a Mandatory audit requirement for all public companies. An Independent Certified Public … [Read more...] about What is Statutory Audit
Property tax accrual journal entry
Property tax accrual journal entry is to record a due entry. We can consider it as a remainder entry. It’s a standard accounting practice to record the entries as and when the expenses are incurred, irrespective of the payment status. Let’s have a logical understanding … [Read more...] about Property tax accrual journal entry
Drawing Power
Drawing power refers to the monetary credit limit that a banker permits a borrower to cater for the working capital needs. Working capital is the financial resources necessary to cover everyday business requirements such as paying creditors, covering operational expenses, … [Read more...] about Drawing Power
Journal entry for mileage expense
Journal entry for mileage expense is to record the business expenses. However, the way business incurs is through different medium. Employees need to travel as part of their work responsibilities. Business doesn’t necessarily incur expenditures in its name. Its … [Read more...] about Journal entry for mileage expense
Journal entry for new vehicle purchase
Journal entry for new vehicle purchase is to record an asset. It is supposed to be for business purposes. In other words, the purchase of a car for personal purposes will not qualify for recording in the books. We need to understand the mode of acquisition before … [Read more...] about Journal entry for new vehicle purchase