Archive | June, 2013

Advantages and Limitations of Audit

Advantages of Auditing Assurance of true and fair accounts An audit provides an assurance to the investors, government, lenders, creditors, owners, management etc.  That the final account presented shows the true and fair picture of the profit and losses and financial position of the concern True and fair balance sheet The user of final accounts […]

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Introduction to Communication

communication is integral part of human evlution it is a link between ideas and action it is the basis of all socio-economic, political and cultural activities it has been found to be one of the most important skill required for success. various methods are used for communication such as verbal, non-verbal, oral, written, body language, […]

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Important definitions as per CST ACT 1956

Business as per section 2(aa) of CST ACT, 1956 The term business includes – Any trade, commerce or manufacture or any adventure or concern in nature of trade, commerce or manufacture, whether or not such trade, commerce or manufacture, adventure or concern is carried on with a motive to make gains and whether or not […]

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Qualities of An Auditor

The auditor should have the following qualities:   1. Chartered accountant – A company auditor must be a practicing chartered accountant 2. Skills and competence –  An auditor must be an expert with professional knowledge, training, experience and competence in the field of accounting, auditing, mercantile law, company law, taxation, costing etc. should be aware of changes […]

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All Agreements are not Contract but all Contracts are Agreements.

Definition Section 2(h) of the Indian Contract Act defines the term contract as “any agreement enforceable by law” Section 2(e) defines agreement as “every promise and every set of promises, forming the consideration for each other.” Mathematical equation CONTRACT=AGREEMENT+ENFORCEABLE BY LAW AGREEMENT = OFFER + ACCEPTANCE ESSENTIALS OF VALID CONTRACT:- Offer and Acceptance: For any […]

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Types of Working Capital

Gross working capital: gross working capital is equal to total current assets. Items of current assets are like stock of raw material, Work-in-progress, finished goods, spares and consumable stores, debtors, bills receivable, cash and bank balance, accrued income, prepaid expenses, advance payment, short term investment etc. Net working capital: net working capital is the excess […]

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BAF Topper talk with Bhagyesh Vagal

Name –  Bhagyesh vagal    College – Nirmala memorial foundation college kandivali (E) secured 81% in 4th semester  Tell us About Yourself. Hi ,I’m  bhagyesh vagal    I have been an accounts student for last 5 years, I love reading ,chatting Did you expect to be the topper? To whom would you credit this success to? No, […]

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BAF Topper talk with Falguni Paleja

Falguni Paleja – FYBAF Topper 2012 and SYBAF student from Nirmala memorial foundation college kandivali (E), shares her insights and tips with the BAF.co.in team. She scored 74.71% in 1st sem and in 2nd sem 78.57% Tell us about yourself. I am falguni, I love to come up with new things to do each and every time because […]

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Auditing – Advantages And Limitations

Advantages of Auditing  Assurance of true and fair accounts – An audit provides an assurance to the investors, government, lenders, creditors, owners, management etc.  That the final account presented shows the true and fair picture of the profit and losses and financial position of the concern True and fair balance sheet – The user of final accounts […]

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AUDITING – definition and objectives

Definition of auditing Auditing and Assurance Standards (AAS) 1 by ICAI “Auditing is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon”. A.W. Hanson “An audit is an […]

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