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VERTICAL ANALYSISVertical analysis is a technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount. For example, on a statement of profit or loss, selling expenses are expressed as a percentage of total revenue. When analysing a statement of financial position, current assets are expressed as a percentage of total assets.... Read More
Internal control over cash paymentsCash is disbursed (paid out) for a variety of reasons, such as to pay for cash purchases, to pay suppliers for goods and services bought on credit, to pay for expenses and liabilities or to purchase assets. Determining appropriate procedures
for authorisation of electronic payments and the issue of cheques is key to effective control over cash payment... Read More
The sales journal (also known as sales book and sales day book) is a special journal that is used to record all credit sales. Every transaction that is entered in sales journal essentially results in a debit to accounts receivable account and a credit to sales account. All cash sales are recorded in another special jo... Read More
SPECIAL JOURNALSSo far you have learned to journalise transactions in a two-column general journal and post each entry to the general ledger. This procedure is satisfactory in only the very smallest businesses and is inappropriate for entities such as JB Hi-Fi Ltd and Fantastic Holdings which process thousands of transactions each month. To expedite journalising and posting, most businesses use... Read More
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