Expenses incurred during the year but for which payment has not been made and will have to be made next year are called unpaid expenses, e.g., rent, rates, tuxes, electricity charges, audit fee, salaries, etc. The auditor should examine vouchers, receipts, invoices, demand notes, etc., to ascertain whether expenses ought to have been debited to the current year’s profit and loss account and whether any payment has been made.
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- Total cost of work in process
Total cost of work in process is the cost of the beginning work in process plus total manufacturing costs for the current period.
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Contra-revenue account is an account that is offset against a revenue account on the income statement.
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Return on common stockholders’ equity refers to a measure of profitability that shows how many dollars of net income were earned for each dollar invested...
- Management Auditing
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Variance is the difference between total actual costs and total standard costs. The variance is expressed in total dollars, and not on a per unit basis.
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The amount that must be invested today at a given rate of interest over a specified time is called present value.
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