Introduction to Accounting for limited companies
Why limited companies?
Even though there are several businesses in the UK that trade as sole proprietorships, like partnerships and in other forms, overwhelmingly the most significant business form is the limited company. In terms of wealth created, sales revenue generated, number of people used, exports attained and practically any other measure, limited companies dominate the business scene. The limited companies are matter to a huge deal of regulation, specifically in the areas of finance and accounting. This is principally true of those limited companies whose shares are traded on the London Stock Exchange. All of this regulation can be very tiresome for the companies and, significantly extremely expensive.
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The cause that we are regarded as to whether one company is a subsidiary of another is, of course, that group financial statements must be ready in which there is a parent/subsidiary relationship, but not otherwise.
Cost Audit - the verification of cost accounts and a check on the observance to cost accounting plan. So, cost audit includes-checking up the arithmetical accuracy of cost accounts and verifying whether the standards that are laid down have been followed or not.
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Utility of Financial Accounting gives well specified rules and principles of recording business transactions.
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