Shares and debentures are somewhat similar in nature and both of two them provide capital to business. Shares are considered as the residual parts of the business capital. Debentures are uniform part of the loan capital of a company and debenture are considered as loan financing from the creditors. Rights, privileges and the liabilities accompanying these …

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Working capital consists of two components for example fixed components and variable components. While the fixed components is to be financed through long and medium term sources of finance, the variable portion of working capital is financed through short term sources. Certain internal resources like depreciation, reserves and provisions are also used for short term …

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Basic accounting assumptions is a set of standars of rules based on Generally accepted Accounting principles (GAAP). Accounting principles and assumptions are the essential guidelines under which businesses prepare their financial statements. Basic accounting assumptions provide a foundation for recording the transactions and preparing the financial statements for an entity. Assumptions provide the fundation for …

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A debenture may be defines as an acknowledgement of a debt or loan by a company containing a contract for the repayment of the principal amount of debt at a specified date and for the payment of interest at a fixed rate. A share capital of a company which is divided I a large number …

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Integrity, Objectivity and Independence: The auditor should be straightforward, truthful and sincere in his approach to his professional work. He must be fair and must not allow prejudice or bias to override his objectivity. He should maintain an impartial attitude and appear to be free of any interest which might be regarded. Confidentiality: The auditor …

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