Some of the most frequently asked questions on valuation of assets and liabilities of a company are as follows: Q.1. Examine the Factors that Effects the Valuation of Goodwill. Ans. The factors affecting goodwill valuation are: 1. Profitability: One who pays for goodwill looks to the future profits. The future profits which depend on a variety of factors (such as, [...]
Some of the most frequently asked exam questions on auditing for dividends and divisible profits are as follows: Q.1. Define and explain the term 'Divisible Profits'. Ans. These refer to that portion of profits (i.e., the excess of income over expenditure including provision for taxes and depreciation) which are available for distribution as dividend to the shareholders of the company. [...]
In this article we will discuss about the checklist for the verification of assets and liabilities of a company:- 1. Copyright 2. Royalty 3. Travelling Expenses 4. Loans on Mortgage 5. Bank Overdraft 6. Loan to a Director 7. Investment in Shares 8. Plant and Machinery 9. Secured Loans 10. Preliminary Expenses 11. Leasehold Mining Rights 12. Railway Siding 13. [...]