Depreciation: Depreciation is the systematic process of allocating the depreciable amount of an asset over its useful life. Depreciable amount is the cost of an asset, less its residual value. Depreciation must be charged from the date the asset is available for use in the production process and able to give support to production facility. …

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The objectives of accounting for inventories are to determine the appropriate income through the process of matching costs against revenues. The matching principle states that the revenue for the period must be offset by all the expenses incurred in producing that revenue. In most of the companies, the cost of goods sold is the largest …

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Audit Risk: The risk that the auditor gives an inappropriate opinion on the financial statements. Audit risk has two major components. One is dependent on the entity and the risk of material misstatement arising in the financial statements. The other is the dependent on the auditor, and is the risk that the auditor will not detect …

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Inventories are assets and inventories are held for sale in the normal course of business. Inventories may be raw materials, work in process and finished goods. Inventories constitute the lifeblood of merchandising and manufacturing companies.  Inventories are the most essential item for smooth functioning of a business and the sale of inventories provide the major …

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Securities firms and investment banks engage in many key functions of investment related based on their nature of activity. These activities are the major part of their business and it ranges from investment in securities to take part in issue management and initial public offering. Investment banks offer various services ranging from equity underwriting to …

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