Such errors arise when entry in a book or original entry has been made twice and has also been posted twice, are called errors of duplication.
More from this Section
- Contribution margin ratio
Some managers prefer to use a contribution margin ratio in CVP analysis. The contribution margin ratio is the contribution margin per unit divided by the unit selling price.
Depreciation is the process of allocating to expense the cost of a plant asset over its useful (service) life in a rational and systematic manner. It is a process of cost allocation...
- Direct materials
Raw materials that can be physically and directly associated with the finished product during the manufacturing process are called direct materials.
Conservatism which means that the best choice among accounting alternatives is the method that is least likely to overstate assets and net income.
- Contra asset account
Accumulated Depreciation- Office Equipment is a contra asset account which is an account offset against an asset account on the balance sheet.
- Meaning of verification
Meaning of verification is ‘proving the truth’, or ‘confirmation’. An auditor has not6 only to see the arithmetical accuracy and bona fides
Units-of-activity is a depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset, rather than as a time period.