What do you mean by debt extinguishment?
Debt extinguishment occurs when a debt instrument is terminated. This occurs when the borrower repays the lender or bonds are retired by the issuer. Extinguishment may not involve full repayment of a debt; the two parties may agree on a lesser repayment amount if the borrower is unable to make a full repayment of the...
What do you understand by debt covenant?
Debt covenants can simply be defined as agreements between the business and the creditors. Under this, the borrowing company is supposed to abide by certain conditions, in order to be entitled to receive the loan. If those conditions are not met, the borrower is considered to be a defaulter. For instance, “the borrower shall not...
Difference between virtual certainty and reasonable certainty?
Virtual certainty determination is a matter of judgement to be evaluated on a case to case basis , should be supported by convincing evidence, i.e., evidence available at reporting date in concrete form and cannot be based merely on forecasts of performance Reasonable certainty would normally be achieved by examining past records of the enterprise;...
What do you mean by walkthroughs and control testing?
A walkthrough test is an examination of each step involved in a transaction. A transaction is traced right from the beginning to the end to understand the process flow A walkthrough test is an auditing technique that examines a process from initiation to completion. It is done on a very small sample – it may...
How will you carry out a risk-based assessment?
● A risk assessment is a systematic process that involves identifying, analyzing, and controlling hazards and risks. It is performed to determine which measures are, or should be, in place to eliminate or control the risk in the workplace in any potential situation. ● The process of risk assessment generally includes the following steps: ○...
What is the use and purpose of Excel Pivot Table, VLOOKUP, HLOOKUP, SUMIF, and Index Match?
● Pivot Table is an interactive way to quickly summarize large amounts of data. It is used to summarize, sort, reorganize, and group. It allows us to extract the significance from a large, detailed data set. ● VLOOKUP: It is a function that makes Excel search for a certain value in a column, to return...