Limited assurance engagement is also known as review engagement or negative engagement. This kind of engagement is not the same as a reasonable assurance engagement. Usually, if the auditors use this engagement, they will perform less review and procedures to support their conclusion on the financial statements (Also see Introduction to Financial Statements) . Then, […]
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How to Set Up an Excellent Business Website?
After you have incorporated your firm, besides hiring an accounting firm in Johor Bahru to manage your accounting-related tasks for your new company, you need to consider setting up a business website for it. The website of your business plays a crucial role in branding and marketing (Also see Affordable Marketing Strategies for New Companies […]
Balance Sheet and Consolidated Balance Sheet
Definition of Balance Sheet A Balance Sheet (Also see Introduction of Balance Sheet) is a review of the financial status of a business at a specific time. It is a fundamental part of the financial statement (Also see Introduction to Financial Statements ) together with the statement of cash flows and income statement. The Balance […]
How to Calculate the Carrying Value of Assets?
The carrying value refers to the reported cost of the assets that a company owns. This means that the carrying value is the value of the assets shown in the company’s balance sheet or books of accounts, less the sum of depreciation (Also see Straight-line Depreciation and Accelerated Depreciation) based on the assets’ useful life. […]
Do You Think Dividend is an Expense?
Dividend refers to the portion of profits the company has generated which is distributed to the company’s shareholders. Most people would think that this is an expense from the company’s perspective because the company spends money to pay the investors. This is one of the common misconceptions among people who do not know accounting treatments […]
Why Do We Need to Generate Financial Statements?
One of the crucial facts that you should know before you start running a business is that you need to generate financial statements of your company for every financial year. This is what every business should do as the financial statements can portray the financial position and business performance of the company. With the help […]
Counting and Auditing the Warehouse Inventory
Typically, the small and private businesses will appoint in-house auditors or engage an audit firm in Johor Bahru to perform an internal inventory audit every year. Their warehouse inventories may be in either an onsite or an offsite place. Although the procedures for valuing and counting inventories can be similar to that of those public […]
Can You Differentiate Net Income and Net Sales?
All the for-profit organisations have the same objective, that is to generate profit. To earn a profit, the company needs to make sales. Thus, we can see that there is a close relationship between sales and profit. If a company wants to earn more profit, it needs to increase its sales. However, income and sales […]
The Differences Between Calendar Year and Fiscal Year
In the world of business, there are two types of years, which are the calendar year and the fiscal year. You may have heard of the latter quite often if you run a business. However, do you know what does it mean and the differences between the calendar year and the fiscal year? Both of […]
First in, First out (FIFO) and Last in, First out (LIFO)
Managing the inventories of a company is never an easy task for companies which are entirely stock oriented. Business owners may use various ways to maintain the inventories they own (Also see Periodic Inventory System and Perpetual Inventory System). Some of the examples are first-in, first-out (FIFO), last-in, first-out (LIFO), weighted average, as well as […]