Money Market Securities

MEANING – Money Market Securities are part of Financial Market where Instruments with high liquidity and very short term maturity are traded. It’s a place where large financial institutions, dealers and government participate and meet their short term cash needs. According to Crowther : “The money market is the collective name given to the various… Continue reading Money Market Securities

Principles of Management

Management Principles developed by Henry Fayol: DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. AUTHORITY: The concepts of Authority and responsibility are closely… Continue reading Principles of Management

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… Continue reading Advantages and Limitations of Audit

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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,… Continue reading Introduction to Communication

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… Continue reading Qualities of An Auditor

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… Continue reading All Agreements are not Contract but all Contracts are Agreements.

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… Continue reading Types of Working Capital

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… Continue reading Auditing – Advantages And Limitations

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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… Continue reading AUDITING – definition and objectives