Branch Accounts 1
Branch Accounts 1. Reasons For The Establishment Of Branches.— When A Business Undertaking Begins To Extend The Field Of Its Selling Operations Beyond Its Immediate Vicinity, It Becomes Advisable To Establish Branches Or Agencies. Branches Must Be Distinguished From Agencies, For The Reason That The Former Are Practically Departments Of ...
Classes Of Audits 1
Classes Of Audits 1. Classes And Types Of Audit.—long-standing Cus Tom In The Accounting Profession Has Classified The Func Tions Of The Auditor Under Certain Definite Types Of Contracts Or Engagements. It Is The Purpose In This Chapter To Explain These Types. Audits May Be Broadly Classified As Follows: (a) ...
Consignments And Joint Ventures
Consignments And Joint Ventures 1. Legal Relation Between Consignors And Con Relation That Exists Between A Consignor And A Consignee Is That Of Principal And Agent. While The Rights And Duties Of Both Parties Are Usually Regu Lated By A Contract, Their Relations Are Governed Also, To A Large Extent, ...
Corporations 1
Corporations 1. The Varied Aspect Of Corporations.—in Different Volumes Of The Modern Business Text, Corporations Are Treated From Different Standpoints. In "organ Ization And Control," The Legal Phases Of Corporations Are Considered. In "corporation Finance" The Topic Is The Procedure Followed In Securing The Capital For The Enterprise. Here It ...
Fiduciary Accounting 1
Fiduciary Accounting 1. Examples Of Fiduciary Relations.—in The Dis Cussion Of Consignment Accounts, And In The Chapter Which Follows Dealing With Statements Of Affairs And Realization And Liquidation Accounts, The Prerogatives Of Persons Charged With Responsibility For An Estate Often Replace Those Of The Actual Proprietors. The Agent Accounts To ...
I Certify
I Certify That The Above Balance Sheet Is, In My Opin Ion, A True Statement Of The Financial Condition Of The Blank Manufacturing Company At December 31, 1916, And That The Accompanying Profit-and-loss Account Is Correct. (signed) John Doe, Certified Public Accountant. An Analysis Of The Above Certificate Will Show ...
Insolvency Accounts 1
Insolvency Accounts 1. Insolvency Described.—up To This Time Only The Accounting Practice Of Solvent Business Organizations Has Been Considered. It Now Remains To Consider The Status Of Insolvency. A Concern May Be Forced Into Insolvency When Its Liquid Assets Are Not Sufficient In Amount To Meet Its Current Liabilities As ...
Partnership Dissolution 1
Partnership Dissolution 1. Types Of Dissolution, Or Liqui Dation, Of A Partnership May Be Voluntary Or Involun Tary. In The First Case, Liquidation Is Brought About By Agreement Among The Partners, And In The Second Case By The Action Of Outsiders, Who Are Generally Credi Tors Of The Firm. It ...
Partnership Dissolution Illustrated 1
Partnership Dissolution Illustrated 1. Adjustment Of Affairs Upon Retirement Of A Adjustments Necessary Upon The Re Tirement Of A Partner Are Well Illustrated In A Case Stated By Mr. Leo Greendlinger, C. P. A. A, B, C And D Were Partners, Having A Partner Ship Agreement In Writing Which Contained ...
Partnership Problems During Operations
Partnership Problems During Operations 1. The Importance Of The Partnership Contract.— When Men Enter Into Partnership They Are Vitally In Terested In The Partnership Agreement. In Fact One Of The Greatest "bones Of Contention" Is A Vague, Badly Worded Contract And Probably Nothing In Their Busi Ness Life Will Cause ...
Partnership Problems At Organization
Partnership Problems At Organization 1. The Importance Of Properly Drawn Articles Of Copartnership.—the Partnership Relation Is A Fruit Ful Source Of Litigation. Many Of The Disputes That Arise Between The Members Of A Firm Might, However, Be Avoided If The Articles Of Copartnership Included Certain Clauses Dealing With The Accounts. ...
Procedure And Methods 1
Procedure And Methods 1. Advance Notice To Employes Whose Accounts Are To Be Audited.—where The Proprietor Has No Reason To Suspect That Fraud Or Dishonesty Has Taken Place, There Seems To Be No Reason Why He Should Keep Se Cret His Intention Of Having An Audit Made. As A Matter ...
Proprietary Accounts 1
Proprietary Accounts 1. Proprietorship Defined.—the Excess Of Assets Over Liabilities Constitutes Proprietorship, Or Owner Ship. The Ledger Accounts That Represent And Meas Ure This Excess Are Down As The Proprietary Accounts. Broadly Speaking, There Are Two General Classes Of Undertakings. The First Class Consists Of Those Un Dertakings In Which ...
Renewals Repairs
Repairs, Renewals, Depreciation And Fluctuation 1. Difficulty Of Distinguishing Between Capital And Revenue Charges.—whether A Certain Item Of.expendi Ture Should Be Charged To Capital Or To Revenue Ac Count Is A Perplexing Question For Both Accountants And Business Managers. It Is Also A Question For Which It Is Easy To ...
Reports And Certificates 1
Reports And Certificates 1. Contents Of Auditor's The Auditor Has Completed His Investigation Of The Books And Ac Counts Of His Client, He Usually Prepares In His Own Office A Report Of The Result Of His Examination. Each Auditor Will Have His Own Method Of Preparing This Report. All Reports ...
Scope Of Auditors Activity
Scope Of Auditor's Activity 1. Widening The Scope Of The Auditor's Activity.— Originally, As We Have Seen, The Auditor's Activity Was Confined To Verifying The Accuracy Of Certain Accounts Presented To Him. While This Is Still One Of His Im Portant Duties, Business Men Are Learning To Depend More And ...
The Auditor And His
The Auditor And His Work 1. Accountancy, As A Profes Sion, Has Been Legally Recognized In The United States Since 1896, There Are Many Business Men Who Are Unfamiliar With The Work Of The Auditor. Either They Regard Him Simply As One To Call Upon When The Un Fortunate Necessity ...
Verification Of Liabilities 1
Verification Of Liabilities 1. Liabilities To Be Verified.—in The Matter Of Veri Fying The Liabilities The Auditor's Duty Consists In Ascer Taining Whether Or Not All Liabilities Are Stated, And Whether Or Not Those That Are Shown Are Properly Lia Bilities Of The Undertaking. Some Business Undertakings Make Large Purchases ...
Verification Of The Asset
Verification Of The Asset Side Of The Balance Sheet 1. General Duties Of An Auditor In The Verification Of Methods Which The Auditor Will Em Ploy In Verifying The Assets And Liabilities Of A Busi Ness Undertaking Will Be Largely Governed By The Na Ture Of The Contract That He ...