Category: BAF Gyan
-
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,…
-
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…
-
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…
-
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…
-
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…
-
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…
-
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…
-
Important Financial Terms
ACCRUAL – this is an expense incurred but not yet entered into the double entry bookkeeping system. BAD DEBTS– this is money owing by a customer which either the customer cannot pay or which the customer will not pay and you are unwilling to take steps to force the payment. In short it’s the amount…
-
Importance Of Accounting Standards
Accounting Standards mandatory as on July 01, 2012 AS 1 Disclosure of Accounting Policies AS 2 Valuation of Inventories AS 3 Cash Flow Statements AS 4 Contingencies and Events Occurring after the Balance Sheet Date AS 5 Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies AS 6 Depreciation…