Explain and distinguish the difference between a transaction, an event and an arrangement.

Q: Define each of the following terms:a. Agent; principal; agency relationship

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal authorizes agent…

Q: What information is each type of document supposed to provide?

A: Answer: There are different types of documents which provide various information.

Q: Why is accounting a service activity and also a process or system?

A: Accounting is adopted by every business irrespective of its nature.

Q: What is tally accounting, and how does it work?

A: Tally is an accounting program that lets you track and manage all of your accounts, sales, debts,…

Q: Distinguish between assets and liabilities.

A: Step 1 Assets can be defined as the resources owned by the organization which is capable of…

Q: transaction, an event, and an arrangement.

A: Transaction, event and arrangement are commonly used in business or life to denote certain…

Q: Briefly explain what is meant by transaction analysis. Whatare the two principles underlying…

A: The process of identifying the economic effects of each transaction of the business is known as…

Q: What's the significance of identifying if the transaction is under operating, investing or financing…

A: Normally there are three types of activities 1) Operating activities 2) investing activities 3)…

Q: Describe how debits and credits impact assets, liabilities , owner,s equity

A: The books of accounts are prepared as per the double accounting system. All the debits shall be…

Q: 2. When do you considered an as to related party’ transaction?

A: A related party is an entity or a person that has some relationship with the reporting entity or…

Q: Match each transaction with its related term: Terms Definitions

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…

Q: Explain connecting affiliation and mutual ownership. Explain the differences between the two.

A: In a connecting affiliation, at least one subsidiary has stock in the parent company. ... In a…

Q: Explain the difference between the two types of subsequent events.

A: Subsequent events refers to events which occur after the end of reporting period but before…

Q: Who is considered a related party when we refer to related party transactions

A: Transactions where the client or the client's top management is related to each other or where the…

Q: ne

A: Negotiable Instruments are written contracts whose benefit could be passed on from its original…

Q: Where are transactions initially recorded?

A: The primary point where the financial transaction, which is initiated or effected by entity during a…

Q: Describe what is meant by transaction analysis.

A: Accounting Equation: Accounting equation is the mathematical representation of the relationship…

Q: Distinguish between a fictitious transaction and an artificial transaction?

A: The difference between fictitious transaction and an artificial transaction is based on the…

Q: Describe the process of transaction analysis.

A: Process of Transaction analysis: The process of transaction analysis involves the selection of…

Q: What makes an account significant or an assertion relevant?

A: Significant Account  An account is said to be significant when there is a chance that the account…

Q: Define what "accrual" AJE transactions are.

A: Journal entries are made in the books of account to record the financial transactions of a business.…

Q: Provide the proper format for recording a transaction.

A: Journal: Recording of a business transactions in a chronological order is called journal.

Q: Explain the terms to account for and accounted for.

A: Account Account is refer as the record in the general ledger which is used to sort and store the…

Q: Consideration is i transaction which

A: Transactions between related persons and other activities of the Schedule I under the CGST Act will…

Q: Distinguish between statement of affairs and balance sheet.

A: Difference between Statement of Affairs and Balance Sheet: Objective of balance sheet is show…

Q: Ethics of accruals and deferrals.

A: Lets understand the meaning of accrual and deferrals. Accrual is a recording income and expense in…

Q: termine ACA and TCSA of the entity? Provide example to explain your answer.​

A: ACA and TCSA-: The capital profit (made in the CGT incident L3) is comparable to the difference…

Q: what is a trial balance?

A: Trial balance is the summary of accounts, where their total debit and credit balances must be equal…

Q: Direction: Classify each transaction whether they operating, financing or investing. After which,…

A: Statement of cash flow (CFS) refers to a financial statement which shows the flows of cash and cash…

Q: Explain how securitisation works and what the role is of each party involved during the process

A: Financial securities are the instruments that are used by investors to invest their funds and money…

Q: Mutual agency is defined

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: Distinguish between substantive tests of transactions and tests ofdetails of balances. Give one…

A: Distinguish between substantive tests of transactions and tests of details of balances.

Q: Explain what accruals and deferrals do and give examples of each.

A:

Q: What is an internal exchange transaction, and how is it reported?

A: Internal exchange transactions are those reciprocal exchange transactions that occur between funds…

Q: Distinguish between a test of control and a substantive test of transactions. Give two examples of…

A: SOLUTION- Test of controls: auditors assess control risk based on understanding of internal control…

Q: For each transaction indicate whether it should:

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: How a transaction is determine to be Accretive or Dilutive and what does it means

A: Earnings per share: Earnings per share represent the amount of income earned per share of…

Q: What is articles of association

A: Articles of Association is very important documentation for the company which shows all the rules…

Q: When does an activity be part of related party transaction?

A: Related party: Related party refers to the person that is related to an entity. A person or a close…

Q: Difference between going concern and matching principle of accounting

A: Going concern concept: It is a concept under which it is assumed that the organization will continue…

Q: Service revenue belongs on which financial statement?

A: Service revenue is in the nature of Revenues account. Therefore, the Balance of Service revenues…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.