Capital expenditure:Â The funds utilized by any company or firm for purchasing, improvement, and maintenance of the long-term assets come under capital expenditure. Usually, non-consumable and fixed assets like property, infrastructure, technical equipment, and infrastructure that are physical in nature can be termed as long-term assets. Capital expenditure allows the company to enhance its capacity and efficiency. The important aspects of capital expenditure include:Â
- Long terms effects that can make a positive impact on the company’s future activities.Â
- Irreversibility capital expenditure can make a negative impact if a company is recovering from a loss.
- It is seen that capital expenditures have high initial costs and can prove detrimental impact on the books of the company. (However, this is justified in case of advancing with respect to technological demands of the market)Â
- Capital expenditure is subjected to value depreciation.
Financial accounting for debentures: A form of long-term loan a company takes is termed as debenture. The debentures usually come with a fixed interest rate, and they must be paid prior to the payment of dividends to the shareholders. There are primarily two types of debentures, including Convertible debentures and Non-convertible debentures. Term debenture is utilized interchangeably with a loan, notes, bond, etc. Many institutes are regularly asking questions related to debentures like Issue of debenture, Debenture allotment, Loss on the issue of Debenture and Receipt of money.Â
Bank reconciliation: Bank reconciliations directs at studying the company’s bank statement and records with the financial statements or account books of the company. It assists in tracking the cash flow of the company and creating flawless planning for the overall budgeting of the company. It also allows the auditing specialists to detect any mishappening or fabrication in the establishment and also banking errors. Â
Accounting report: An accounting report is a sort of routine financial statement that describes the status of the company in terms of financial health. It allows the company to assess and overview its financial transactions for a specific period of time. A balance sheet, an income statement, and a cash flow statement are the major constituents of an Accounting report.Â
Tax accounting: Primarily a segment of accounting that refers to the assessment and reviewing of the tax returns and the tax payments of any entity or an enterprise. Tax accounting includes topics like Tax management, Transfer pricing, Multistate Tax, Business Tax, Tax transformation, and many more. Students must also concentrate on the rules associated with tax computation that are subjected to modifications along with the change in the nature or structure of an organization.
Bookkeeping theories: Recording a company’s financial transactions regularly form the core part of bookkeeping. It can play a crucial role in tracking a firm’s financial dealings and devising a key strategy in decision making. A proper understanding of the basics like Assets, Liabilities, Revenues, Expenses, Costs, and Equity is a must for students enrolled in this discipline.Â
Internal auditing: The accounting processes of a company can be examined by the process of internal auditing. Also, accounting professionals are well aware of the fact that the process of internal auditing also allows them to examine the company’s governance techniques and internal controls. It offers risk management and investigates the effectiveness of the company’s financial as well as administrative control.
The process followed while conducting an internal audit is as follows:
- Assessment Techniques: It includes the indirect assessment techniques followed by the auditors like examining the flowcharts, manuals, departmental control procedures and other information.Â
- Analysis Techniques: It includes transaction matching, audit trail calculators, counting physical inventory if needed. Such techniques test-specific data and sometimes targeted segments are taken into consideration by the auditors.
- Reporting Procedures: A formal report that may contain a preliminary report supported by an interim report comes under a reporting measure adopted by the auditing professional. It includes a detailed description of the audit findings and recommendations to improve the efficiency of the internal controls.