When the auditor is completely satisfied with the truth and fairness of the financial statements of the company's accounts not have any qualifications, i.e. negative statements. Such a report is called an unqualified or clean report. Contrarily, there are instances when the auditor qualifies the audit report, when the company's financial records are not kept as per the generally accepted accounting principles, however, no misrepresentations are found. In such a case, the report issued by the … [Read more...]

While in multichannel retailing many channels of distribution are used to focus on the product, in omnichannel retailing, different channels of distribution are used by the marketer to focus on the customer. We all know that customers have multiple options today from where they can buy products, but they have lacks time and attention. In this way, various approaches to marketing are used by marketers these days. Of these approaches, the two most common ones are - Multi-Channel Retailing and … [Read more...]

Based on access to capital, the companies are classified into listed companies and unlisted companies. Every listed company is a public company, but vice versa may not be true. Further, an unlisted company can be a private limited company or a public limited company. For the purpose of trading in the stock market, a company must list its securities in the stock exchange, which implies that the company's name is registered in the Stock Exchange. Here, it is to be noted that equity securities … [Read more...]

Do you guys know that only directors can be managing directors of the company, but any person with the requisite qualification can become a whole-time director of the company? There is always confusion regarding the roles and functions of the Managing Director and Whole-time Director. Who are Directors? As the name suggests, directors are the officers of the company who are appointed with an aim of directing and supervising the company's affairs. According to the Companies Act, the term … [Read more...]

The primary difference between bilateral and multilateral trade lies in the number of participants, i.e. in a bilateral trade agreement involve two participants i.e. two nations, whereas in the case of multilateral trade agreements, entails three or more nations without discrimination between the countries involved. What is International Trade? International trade means the exchange of goods and services among multiple nations, wherein domestic companies can export their specialties to other … [Read more...]

There are instances when all the shares which a company offers are not subscribed by the company, in that case, the total number of shares applied for is less than the number of shares offered by the company to the public. This is a situation of under subscription. On the other hand, there are also certain cases when the general public subscribes for more shares than the shares offered by the company, then in this case over subscription takes place. In this regard, first of all, we need to … [Read more...]

When a shareholder pays the amount due on calls before it is demanded, it refers to the calls in advance, and the amount received by the company, is kept in a separate account, i.e. Calls in Advance A/c, and so it is not indicated as the capital of the company until it is demanded by the company from the shareholders. In contrast, when the company issues notice to all the shareholders regarding the payment of allotment or call money due on the shares, it needs to be paid within the specified … [Read more...]

Re-Order Level (ROL) implies the material level at which purchase requisition is generated for a fresh supply of material. When the stock on hand, approaches the reorder point, the storekeeper takes action to replenish the exhausted stock. So, the difference between reorder level and minimum level will be adequate to meet the production requirement till the fresh supply is received. On the contrary, Re-Order Quantity (ROQ) represents the size of the order, which is going to be placed by the … [Read more...]

Sacrificing Ratio is the ratio of sacrifice as to the part of profit made by the old partners, in favor of the one who is entering the firm. On the other side, the gaining ratio is the ratio of gain in the share of profit, received by the continuing partner when one of the partners resigns or leaves the firm. Change in Profit Sharing Ratio Change in the Profit Sharing Ratio (PSR) is due to the following reasons Purchase of a share of profit by one partner from another leads to a change in … [Read more...]

In a business, purchases are made by the firm to keep a stock of goods for the purpose of reselling it to customers and also for producing other products. When the purchases are made, they are recorded in the purchase day book first which indicates the name of the supplier and other details as to the product bought. Thereafter, the total is transferred to the Purchases account every month from the Purchases Book. Purchase Book is a book of original entry, just like Journal. In fact, it is a … [Read more...]