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Generally, any person becomes a company member by acquiring shares of the same. Now, what does a share mean? A company divides its capital into shares of various denominations. For example, if a company has a capital of Rs. 100,000/-, then it can be divided into 1000 shares of Rs. 100/- each (1000*100=100,000).
Types of ShareholderThere are two major types of shareholders: equity shareholders and preference shareholders. Both of them have their own specific rights and obligations towards the company.
1. Equity ShareholdersEquity Shareholders refer to those shareholders who actively participate in the important decisions of the company and also bear a greater risk as compared to other kinds of shareholders, which entails greater profits in case a company gains and suffers losses if the company does not fare well in business in a particular period.
Equity shareholders enjoy the following benefits:
They get the right to participate in the major decisions taken by the company through voting.
Preference shareholders have their liability limited to the value of the shares they hold.
They possess the entitlement to receive dividends and a share of the profits generated by the company in which they have invested.
2. Preference ShareholdersPreference shareholders have limited decision-making powers in the company, but they hold a preferential right over the profits earned by the company, surpassing that of equity shareholders.
They get preference at the time of payment of dividends.
During the liquidation of a company, the dues of preference shareholders are given priority over those of other shareholders.
In the case of cumulative preference shares, if a company fails to pay dividends in a specific year, the unpaid dividends accumulate and are carried forward to subsequent years.
The sub-types of Preference shareholders are mentioned below:
Convertible and Non-Convertible Preference Shareholders: Convertible Preference shareholders have an option/right to convert their shares into equity shares after a certain period of fulfilling certain terms and conditions. However, Non-Convertible shareholders don’t possess any such rights.
Redeemable and Irredeemable Preference Shareholders: A company must pay back the capital in case of Redeemable Preference shares, which consequently results in the discontinuation of payment of dividends(preferential right on such shares). In the case of Irredeemable Preference shares, the company pays dividend till it continues to exist and does not pay back the capital to such shareholders.
Cumulative and Non-Cumulative Preference Shareholders: In a case where a company is not able to pay dividends to preference shareholders in case of lack of funds, it gets accumulated for the next financial year in case of Cumulative Preference Shareholders. On the contrary, Non-Cumulative Preference shareholders lose their right to receive dividends if a company fails to pay the same in a particular financial year.
Participating and Non-Participating Preference Shareholders: Participating preference shareholders possess an additional right to participate in the decisions of the management of the company. In contrast, non-participating preference shareholders do not possess any such rights.
From the above discussion, we can conclude that there are two types of shareholders: Equity and Preference. Acquiring any of them has its own pros and cons. Equity shareholders get a right to participate in the decisions of the company and have the power to govern the business and eventually change its course of it. The lop side of it is that they have to bear a higher risk and can also go on without even earning a penny if the company suffers losses in a particular financial year. On the other side, Preference shareholders play safe. They don’t get the right to participate in important business decisions. However, they get a definite percentage of profits no matter how the company fared in terms of profits and growth in a particular financial year.
Recommended ArticlesThis is a guide to Shareholder Types. Here we also discuss the introduction and types of the shareholder, which include equity and preference shareholders. You may also have a look at the following articles to learn more –
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Six Types Of Social Spammers
I hate spammers, and I’m 100% certain other people do too. Everyone at some point in time has had some type of experience with spammers. But you almost have to admire these individuals, almost. The techniques used are as varied as the outlets in which they are unleashed. During my thirteen years of internet exposure, I’ve had the displeasure of running into six types of spammers. The first of which I call the Sniper Spammer.
1. Sniper SpammerA military sniper is one who remains in the shadows, lying in wait until the prime target comes by. Pretty intimidating, but the spammer in this category is anything but. This spammer lies in wait until the “next big thing” comes by. For instance, even before Apple announced the release of the iPad, hundreds if not thousands of spammers were out proclaiming “You could win an iPad!”.
2. Suicide SpammerSo why even bother? I’d venture to say whatever it is being ‘presented’ is worth the risk to the spammer. The next spammer takes things a little slow and attempts to pull ‘friends’ in. This one is called, the Sociable Spammer.
3. Sociable SpammerThe Sociable Spammer is pretty closely related to the sleeping spammer (listed last). These individuals often are new to social networking sites. These spammers actually take the time to read the rules and regulations while abiding by them for a period of time.
Then when a sort of “level of trust” is established the spamming begins, in my experience after a month or so. I don’t mean like a flood of links or content, I mean messages/posts like, “Hey Guys, I just wanted to let you all know my company is having a contest. Whoever is the 500th person at our site to fill out a survey gets his/her name placed in a raffle for a chance to win a 2011 Camaro! The contest is only up for a short amount of time so go now! Thanks guys!”
This is usually followed up by a warning or automatic ban. The spammer then moves on to the next forum to begin again. I’ve only seen this type three times, Xanga (remember that?!), MSN Chat Room, and Facebook. These three were memorable enough for a mention here. Speaking of Xanga, this next spammer is infamous for ruining perfectly good blogs with spam. I present to you, the Splogging Spammer.
4. Splogging Spammer
On my personal blog I write about my current weight loss goals and exercise methods, so naturally I looked on WordPress to see if I could find any. The first three I found were literally written, “WEIGHT LOSS WEIGHT LOSS WEIGHT LOSS WEIGHT LOSS WEIGHT LOSS WEIGHT LOSS WEIGHT LOSS WEIGHT LOSS WEIGHT LOSS”, an entire page dedicated to that! I did manage to find one that seemed okay, however further reading revealed it was for moms who had just given birth and were losing pregnancy weight.
Being a man, clearly this was not for me. Back to splogging, rarely have I seen a well written post of these types. If I have, they fooled me. Usually the splogs will consist of post after post after post of the same product with little variation in the wording. Our next spammer, the Synthetic Spammer doesn’t have a mind of its own and in my opinion is a dying breed.
5. Synthetic SpammerProbably the most utilized method in the early beginning, synthetic spamming is essentially a program that scans for sites to submit information to. However, with functions such as ‘Captcha’ it is becoming increasing difficult for these programs to work efficiently. Unfortunately once the registration is completed the program can run the way it is meant to. The most recent social outlet I’ve seen to be infected with these spammers is Twitter.
6. Sleeping SpammerThe Sleeping Spammer is the newest one I’ve come across, seeing my first one in December of last year. Around that time I had a “person” start following me, so with every notification I checked out the profile. 200 following – 120 followers – 0 tweets. I had a gut feeling something wasn’t right, but I was curious to see what would happen. Close to the end of January I decided to check back on this account (since I didn’t follow back) to discover the stats were now, 2500 following – 1300 followers – 1000 tweets.
Stunned I began to read the tweets, “By MaryK Products now #lipbalm#makeup#lipgloss#..etc” Now seeing as how tweets can be automated, and there is a way to automatically follow people, I’m making the assumption this spammer set up his/her account to begin to tweet spam once a certain amount of followers was reached to ensure that when the spam began it would hit the most people in the shortest amount of time before the account was abandoned or suspended. Its for this reason I call this spammer a sleeper.
Let’s be honest, a spammer is a spammer. Regardless of technique or medium used the end result is the same. Luckily with so many new methods of catching spammers such as ‘Captcha’ and even moderator approval for blogs and forums, its getting harder for spammers to infiltrate. But rest assured, as soon as a spammer is blocked he/she will find a way around it. If you have a story about a spammer listed here, or maybe one that isn’t I’d love to hear about it. Thanks for reading.
I’ve complied a list useful articles that provide information on avoiding spamming techniques:
If you have a story about a spammer listed here, or maybe one that isn’t I’d love to hear about it. Thanks for reading.
Joshua Titsworth is a Digital Marketing Specialist at Chemidex. Josh maintains the SEO and SMM in addition to assisting with the PPC and Google Analytics reporting. While off the clock he volunteers as a SEO consult to his church in Olathe, KS, as well as to other non-profits in the area. When M.I.A. online he can be found roaming golf courses in search of his shanked golf balls. You can touch base with Josh on his twitter account @joshuatitsworth.
Types Of Rhythm In Design
A link between elements in art and design is referred to as “rhythm,” and it fosters a sense of harmony. Patterns, interactions between colours and shapes, and repetitions of lines and forms are all examples of rhythm. Instead of allowing the eye to focus on a single focal point, rhythms help to direct the viewer’s eye around a piece. Design rhythm refers to aspects that repeat at intervals. A sound structure is produced through agreed-upon constituent placement. The dynamics can be set, and the rhythm can direct, highlight, and unite. Shape, color, tone, texture, accents, direction, and dynamic are repeated frequently. The elements are arranged, structured, and set into motion by rhythm.
Using intervals or spaces between pieces can create the illusion of rhythm or movement for the user. Five different rhythms are available to us: alternating, flowing, progressive, random, and regular rhythms. Similar to in music, rhythm aids in developing a cadence in your design, enticing users with a variety of intriguing variations. By incorporating the proper rhythm into your design, you can maximise the impact of your message.
Types of RhythmFollowing are the major types of rhythm
Random RhythmRandom rhythms are produced by repeating pieces at random intervals. While the elements could be dispersed throughout, the spacing could be a millimetre here or a centimetre there. Consider random rhythms in action in things like snow falling, beach pebbles, and traffic patterns. It’s also important to keep in mind that if you only look at a small portion of a rhythm, it might seem random. However, if you take a step back and look at a bigger section, it’s possible that the design has been given a regular but intricate rhythm. Keep in mind that you can use positive and negative images to make your design difficult to “predict” by using both the elements and the spaces between them. You’ll have virtually endless possibilities to play with if you combine more elements. René Magritte used random rhythm in an especially Intriguing way.
Regular RhythmThe regular rhythm repeats at the same intervals, much like the heart beating. Simply by drawing a grid or a sequence of vertical lines, you may quickly establish a consistent beat. An abnormal rhythm will be immediately detected by the user’s sight, which will also examine it for any other irregularities. Just keep in mind that the eye “likes” to be drawn to prominent features. Therefore, there is a chance that a design could get boring if you have a consistent rhythm in it (like the dripping of a tap).
Alternating RhythmMore than one element can be repeated in a design. You make an alternate design using a 1-2-1-2-1-2 pattern. Consider the black and white chessboard squares as an example of an alternating beat in play. In actuality, an alternate beat is a regular rhythm with added complexity. It might be as simple as our chessboard, or we might picture something more complicated. There are some amazing rows of fish, birds, or other creatures that alternate rhythms. By using fish as an example, we can see that each identical fish is following another. The sequence is repeated below, but in the empty space between the rows, fish of a different color—which we assume to be the background—can be seen moving in the other direction, their delicate fin and tail lines interacting with those of the fish in the earlier pattern. Another excellent illustration of this is M.C. Escher’s Lizard (1942), which features three different colours of lizards, two of each colour facing away from the other, tail to tail. An alternating rhythm can be a simple technique to break up the monotony of a regular rhythm, no matter how basic or complex we wish to make it.
Flowing RhythmA flowing rhythm displays the elements that are repeated after bends, curves, and undulations. The waves on a beach or the sand dunes are examples of this in nature. By creating beautiful patterns of elements with a flowing rhythm, designers can emulate nature. Underwater, we can display seaweed clumps with strands gently pointing in various directions. The user envisions them rubbing up against one another.
Progressive RhythmWe can create a progressive rhythm by merely altering one aspect of a motif as it is repeated. We could create a succession of circles, each larger than the one below it. Observe how the larger one at the bottom appears to be closest to you. We can modify a progressive rhythm gradually or abruptly. The smallest circle at the top could be dark, the middle one could be partially shaded, and the largest circle could only be lightly shaded. This could be accomplished by shading the smaller circles in stages. We are surrounded by evolving rhythms. You would have a progressive beat if you were to film someone dancing and then watch the movie frame by frame.
ConclusionMost Common Types Of Vpn Protocols
Most Common Types of VPN Protocols
One of the best VPNs available in the market that utilize OpenVPN protocol is Systweak VPN. Systweak VPN offers industry best AES 256-bit encryption standard to safeguard the user information and privacy. Let’s look at some of its features:
Global Content Access: Systweak VPN has servers in more than 50 different countries that help provide unrestricted access to content from all around the world.
AES 256-Bit Encryption: Systweak VPN offers AES 256-bit encryption which makes it virtually impossible for anyone to break the cypher and decode the user information.
Be it streaming or security, Systweak VPN offers best of all world. Systweak VPN is surely one of the best VPN for PC available in the market.
We hope we were able to help you decide the kind of VPN protocol you want to go with. Do let us know about your favorite VPN, we love hearing from you.
Now, when you have the idea of which VPN Protocol suits your need, let’s dig deeper into functioning of these different protocols.
Also Read: VPN Blocked! How Do I Bypass It?
Functioning of Different VPN Protocols: 1. PPTP:Point to Point Tunneling Protocol (PPTP) was created by Microsoft and has been in use since Windows 95. However, PPTP couldn’t offer the security it was intended to. Its security was easily cracked by the hackers and was made useless in just a few months of it releasing.
Because it offers less security when compared with other protocols, it definitely offers the fastest browsing and streaming speed. Not many Service providers use this protocol anymore because of it being unable to serve its purpose.
2. IPSec ProtocolIPSec protocol is widely used in conjunction with other protocols such as L2TP and IKEv2. Although, it can be used separately, it doesn’t provide the require safety that way.
IPSec protocol works on two different modes; Transport Mode and Tunnel Mode. In Tunnel mode, data is sent through multiple tunnels created between the source and destination and is encrypted through different gateways. In tunnel mode, IPSec Protocol doesn’t necessarily require a companion protocol, however, it is suggested to use a companion Protocol.
In Transport mode, IPSec Protocol is requires either the L2TP or IKEv2 protocol to work. In this mode, the data is transferred through a single secure tunnel and data is encrypted in the device itself, not the gateways. The tunnel required to safely transmit the data can be created by either of the tunneling protocols, IKEv2 or L2TP.
3. L2TP ProtocolLayer 2 Tunneling Protocol (L2TP) is used with IPSec protocol. As the name suggests, this protocol is aimed at creating a secure tunnel between the source and the destination. Layer 2 Tunneling Protocol in itself can’t encrypt the data before sending and hence, requires IPSec protocol to do that.
Together IPSec and L2TP offer source to destination security with the help of encryption and secure tunneling.
Also Read: Ways To Monitor VPN Connection On Windows 10
4. IKEv2 Protocol:Internet Key Exchange version 2 is a widely used VPN tunneling protocol. IKEv2 is also commonly paired with IPSec protocol. As the name suggests it helps provide security from various key tracking malicious websites. It can provide security and speed when paired with IPSec protocol.
5. OpenVPN:OpenVPN, as the name suggests, is an open source protocol. OpenVPN employs AES 256-bit encryption and 2048-bit RSA to provide excellent security from cyber-threats. Because it provides customizability and an unbreakable encryption, it has gained a lot of popularity in all sorts of Operating Systems. OpenVPN works on two different protocols; TCP and UDP.
Although the speed OpenVPN offers is hampered by deep encryption, it still manages to provide unrestricted and unhampered streaming. Because of all these upsides and compatibility with all the operating systems, it is the most widely used VPN Protocol.
6. SSTP:SSTP (Secure Socket Tunneling Protocol) is similar to OpenVPN protocol. It too employs AES 256-Bit encryption to safeguard user data from hackers. Similar to OpenVPN, it also utilizes 2048-bit SSL/TLS authentication to authorize only the rightful receiver to decode the data.
These are the most common types of VPN Protocols used by VPN service providers. All these VPNs serve different purposes and have their Pros and Cons. However, if we have to choose one winner that provides the best of all worlds, it would be OpenVPN. With its wide range of compatibility, second to none security, ability to bypass most firewalls, and capability to provide a fast browsing speed, it surely is the rightful winner.
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Sagar Kapoor
Certificate Of Insurance (Coi): Definition, Types, Importance
What is a Certificate of Insurance?
A certificate of insurance is proof of an insurance policy issued by an insurance company. For example, James wants to rent an office space in New Jersey. His landlord requests property insurance. As James has renters insurance, he provides his landlord with the COI and rents the place.
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Key Highlights
It provides evidence that the individual/company has valid insurance, which they can provide for customer documentation.
Businesses, customers, and others need it to confirm the coverage they require.
Types of this certificate would include a certificate of general liability, automobile liability, and workers’ compensation insurance.
It is crucial when one wants to renew their insurance policies, and it also safeguards the insured against insurance fraud.
Certificate of Insurance Types Certificate of Liability Insurance:
It is a policy that protects the insured from any losses that may arise from a third-party lawsuit
General Liability Insurance covers the insured for liability arising from accidents or injuries to a third party, property damage, and other risks.
Another is Professional Liability Insurance, which covers professionals who may be liable to their clients for damages, such as architects, engineers, lawyers, accountants, and doctors.
Certificate of Automobile Liability Insurance:
It is a report to certify that the person has their vehicle insured. For instance, the Department of Motor Vehicles (DMV) issues the certificate for the State of California.
If the insured causes an accident, the insurance pays for the other vehicle’s repairs and medical expenses incurred by the other driver or passengers.
One must submit their certificate to the automobile department, like DMV, if they get into an accident with an uninsured driver.
Certificate of Workers Compensation Insurance:
Its purpose is to prove that the employer has the policy to cover any injuries an employee/worker may sustain on the job. Additionally, the employee cannot sue the business with a COI.
This document shows up on an injured employee’s insurance claim. Thus, the employer must give them the certificate within 24 hours of the injury.
Workers’ compensation insurance covers medical expenses, income replacement, and death benefits. One can get this insurance through a private company or their state’s workers’ compensation program.
Who may Require a Certificate of Insurance?
Firms with customers or clients requiring proof of insurance must obtain the certificate. This document provides evidence that they have the necessary coverage in place.
Businesses must have certain types of insurance, such as workers’ compensation and liability insurance, to protect those employees.
Landlords, event venue managers, and others sometimes require to have COI
It is necessary for vehicle and property owners as well.
How to Obtain a Certificate Of Insurance?
The first step will be to gather all essential information regarding the insurance and fill out a COI form with the respective insurance company.
It could be through most companies’ customer support areas and even online.
The company may take a few days or weeks to create the certificate to verify the data.
Once done, the insured receives the certificate via email, mail, or the website. The insured can print it as a paper version of the certificate if it is a soft copy.
Importance of Certificate of Insurance
It protects businesses from being liable for damages caused by employees or customers.
It is an essential document for employees in the workplace. And it also verifies that the employee has insurance coverage in case of an accident or injury while on the job, especially in high-risk jobs like construction.
It’s an important document when one wants to get new insurance, transfer their policy, or need to renew current policies.
It saves the insured from insurance scams or frauds as they possess proof of insurance.
It also offers a quick overview of the insurance plan.
ConclusionInsurance certificates provide many benefits to businesses. It shows customers the firm’s commitment to protecting them from harm. It also makes it easier to get a new policy when there’s a change in the business structure or location. Consult with an insurance agent or broker to ensure you have the correct type of certificate for your needs. Finally, remember to keep the document safe to access it when needed.
Frequently Asked Questions(FAQs) Q1. What is the certificate of insurance? Q2. What is the difference between an insurance policy and a certificate?Answer: While an insurance policy is a contract between the insured and the insurer, a certificate is simply evidence of insurance coverage.
Q3. What is a transport insurance certificate?Answer: A transport insurance certificate is a document that details the policy number and the coverage contracted. It attests to establishing risk coverage on the goods/logistics operations during international transport.
Q4. When is a certificate of insurance needed from a provider?Answer: It is typically required when contracting with another business or individual. This document provides proof that the insured has the minimum insurance required by the other party. The certificate also states the effective dates of the policy, the policy limits, and the named insured.
Recommended ArticlesThis is a guide to the Certificate of Insurance. It explains its meaning, types, participants, etc. Please read the following article for more details,
Top 8 Types Of Accounting And In
blog / Finance Top 8 Types of Accounting: What are the In-Demand Jobs in this Field?
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Around 136,400 job openings in financial accounting are projected annually in the U.S., and that is not surprising. After all, accounting is a crucial and fundamental business function that involves all financial transactions and activities, such as classifying, recording, and summarizing relevant information to provide accurate reports. According to the United States Bureau of Labor Statistics (BLS), the employment of auditors and accountants is expected to grow by 6% from 2023 to 2031. That is why it is necessary to have a clear understanding of the types of accounting to leverage different job opportunities. Let’s dive deeper into the importance of accounting, its different types, and the career paths you can follow in this field.
Why is Accounting Important?Accounting is important because it plays a significant role in the functioning of different organizations, businesses, and governments. Here is a breakdown of points that will further help you understand the relevance of accounting.
Record-KeepingAccounting is responsible for maintaining accurate records of financial transactions. It ensures compliance with laws and regulations, and provides a clear picture of the company’s financial status. It also helps ensure that a company can effectively manage its finances and make informed business decisions.
Planning and BudgetingAccounting information is used to develop plans and budgets for the future. It helps businesses identify their strengths and weaknesses and make informed decisions while investing their resources.
The process also helps forecast and allocate financial resources to achieve organizational goals. It involves comparing actual results with the budget results and addressing the variances to overcome loopholes.
Tax ComplianceAccounting provides relevant financial information to accurately calculate and report taxes. It aids in tax compliance that involves the process of meeting all legal requirements for paying taxes to the government authorities.
Decision-MakingThe financial information can be used to make important business decisions about revenue, expenses, and investments. It allows managers to identify opportunities for growth and improvement, and make strategic decisions about resource-allocation.
The Different Types of AccountingAccounting is a broad field, and you can choose from a variety of options based on your interests and career goals. The most common types of accounting include:
Financial AccountingDefinition
Financial accounting records and monitors transactions through relevant statements.
Explanation
Financial accountants prepare financial statements such as balance sheets, income, and cash flow statements to perform this type of accounting.
The process is conducted as per the Generally Accepted Accounting Principles (GAAP) rules set by the Financial Accounting Standards Board (FASB).
The primary importance of financial accounting is to provide an authentic overview of company performance to attract investors and stakeholders from outside the organization.
Principles
Accrual:
All costs should be recorded as incurred instead of linking the costs to cash flow.
Full disclosure:
The company’s financial reports must contain all pertinent information.
Conservatism:
All liabilities and expenditures should be declared as soon as possible.
2. Government AccountingDefinition
Government accounting aids in recording, analyzing, and interpreting financial transactions of the local, state, and federal governments.
Explanation
This accounting type involves complying with the rules set by the Governmental Accounting Standards Board (GASB) for local and state governments.
For the federal government, the policies are set by the Federal Accounting Standards Advisory Board (FASAB).
A government accountant keeps track of public funds entering government accounts and makes necessary adjustments to the government’s budget proposal for efficient fund allocation.
Principles
3. Cost Accounting
Definition
Cost accounting refers to the process of determining the net cost generated by an organization after evaluating all of the company’s assets and obligations.
Explanation
The primary aim of cost accounting is to identify key business areas where costs can be reduced to increase profitability.
Cost accountants are responsible for analyzing costs, developing cost estimates, and creating budgets.
By monitoring variable and fixed costs, these professionals align the final output with the cost to produce the product.
Principles
Charge of cost only after its incurrence:
The unit cost should reflect expenditures that have actually been made. For instance, while an item is being produced, unit costs should not be included in selling costs.
Unusual costs should be excluded from cost accounts:
All costs incurred for unusual reasons (such as theft or negligence) shouldn’t be taken into account when calculating the unit cost.
Public AccountingDefinition
Public accounting refers to the practice of offering accounting, taxation, and audit consultancy services to different clients such as individuals, commercial businesses, and government agencies.
Explanation
The goal of providing public accounting services is to ensure transparency and accuracy of the client’s financial statements.
Public accountants must clear the Certified Public Accountant (CPA) examination to obtain the license needed to practice public accounting in the U.S.
Principles
Going concern concept:
If the financial reports are prepared by adhering to the principle of going concern, then businesses can continue to function for a limited time period, usually 12 months from the start of operations.
Matching principle:
This governs how expenses and revenues are reported and reflected in the same financial statements.
5. Tax AccountingDefinition
Tax accounting refers to the process of preparing tax returns and ensuring compliance with tax laws and regulations for businesses.
Explanation
Tax accounting differs from other types of accounting in the sense that it takes government credits, revenue, and deductions into account when calculating a company’s taxable income.
Taxable income is always fluctuating and is primarily dependent on the company’s revenue.
The primary responsibility of tax accountants is to ensure that businesses remain compliant with the Internal Revenue Code (IRC) while filing tax documents annually.
Principles
Consistency in accounting standards:
Proper consistency in accounting methods should be maintained for all taxpayers.
Tax-related transactions:
This ensures that all transactions that are taken into consideration are tax related.
Government-regulated year of assessment:
The year of assessment to be followed while filing tax documents is set forth by the government.
6. Managerial AccountingDefinition
Managerial accounting involves providing financial information to internal stakeholders, such as managers and employees, to help them make informed decisions.
Explanation
The primary responsibility of managerial accountants is to analyze and create a budget to meet the short- and long-term goals of the organization.
They also monitor the past financial performance of the company in order to make predictions about future performance.
Principles
Principles of analogy:
This principle offers insights that help make forecasts and business-related decisions.
Principle of casualty:
Model business expenditures based on the relationship between the input and output of the resources used to create products and services.
7. Forensic AccountingDefinition
Forensic accounting refers to the process of investigating the financial records of individuals and companies.
Explanation
The goal of forensic accounting is to compile all relevant financial documents to accurately and comprehensively account for all transactions in financial statements.
Detect financial fraud and resolve disputes related to situations such as divorce, money laundering, and gambling.
Principles
Independence and neutrality:
A professional in forensic accounting must be independent and unbiased in appearance and mentality.
Integrity and objectivity:
They must be accurate, ethical, and fair in all decisions.
8. AuditingDefinition
Auditing is essentially a financial check-up where an auditor investigates the financial records of a business.
Explanation
The primary goal of auditing is to ensure that all the financial records of a business are accurate and compliant with applicable regulations.
The benefit of conducting audits is that it provides investors reasonable confidence in a company’s honesty and integrity
Principles
Audit evidence:
It is the auditor’s duty to compile enough information to back up their conclusions in the audit report.
Confidentiality:
Auditors must maintain confidentiality if they encounter sensitive information about organizational finances and clients during the auditing process.
ALSO READ: What is Financial Analytics? Why is it Useful for Businesses?
Career Paths in AccountingSome of the most common career paths in accounting include:
1. Staff AccountantStaff accountants are responsible for performing routine accounting tasks, such as preparing financial statements, reconciling accounts, and filing tax returns. They can work in-house at a private company or a public accounting firm.
Average annual remuneration: $60,134
2. Financial AnalystFinancial analysts implement accounting standards to help businesses make informed decisions. They can work in-house at a company or at a financial institution and specialize in areas such as budgeting, forecasting, or investment analysis.
Average annual remuneration: $76,605
3. Audit ManagerAudit managers are responsible for leading teams of auditors in performing independent financial audits. They can work at a public accounting firm or at the internal audit department of a business.
Average annual remuneration: $114,779
4. Financial ControllerFinancial controllers are responsible for the overall financial management of a business or organization. They manage budgets, financial planning, and financial reporting.
Average annual remuneration: $136,935
5. Chief Financial OfficerChief Financial Officers (CFOs) are responsible for designing the financial strategy of an organization. They conduct financial planning and analysis, budgeting, and financial reporting.
Average annual remuneration: $176,329
6. Tax ProfessionalTax professionals are responsible for preparing and filing tax returns and ensuring compliance with tax laws and regulations. They work in-house at a business, at a public accounting firm, or as self-employed consultants.
Average annual remuneration: $43,145
7. Forensic AccountantForensic accountants use accounting and financial analysis techniques to detect and investigate financial fraud. They work in-house at a business, at a public accounting firm, or as part of a government agency.
Average annual remuneration: $67,952
Note: All salaries are specific to the U.S.
ALSO READ: Explore These Top 8 In-Demand High-Paying Jobs in Fintech
Upskill Your Finance Knowledge with EmeritusAccounting is a dynamic field, and professionals need to be willing to continuously learn new skills. Enroll in Emeritus’ wide range of online finance courses, offered in association with top global universities, to upgrade your knowledge of key financial concepts and stay at the top of your field.
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