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Individual transactions are posted both to the controlling account and the corresponding subsidiary ledger, and the totals for both are compared when preparing a trial balance to ensure accuracy. For example, "accounts receivable" is the controlling account for the accounts receivable subsidiary ledger. In this subsidiary ledger, each credit ...
Internal control, as defined by accounting and auditing, is a process for assuring of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. A broad concept, internal control involves everything that controls risks to an organization.
The accounting equation is a statement of equality between the debits and the credits. The rules of debit and credit depend on the nature of an account. For the purpose of the accounting equation approach, all the accounts are classified into the following five types: assets, capital, liabilities, revenues/incomes, or expenses/losses.
A company can maintain one journal for all transactions, or keep several journals based on similar activity (e.g., sales, cash receipts, revenue, etc.), making transactions easier to summarize and reference later. For every debit journal entry recorded, there must be an equivalent credit journal entry to maintain a balanced accounting equation ...
Cost accounting is the process of translating these estimates and data into knowledge that will ultimately be used to guide decision-making. [ 5 ] The Chartered Institute of Management Accountants (CIMA) being the largest management accounting institute with over 100,000 members describes Management accounting as analysing information to advise ...
Control may be grouped according to three general classifications: [3] the nature of the information flow designed into the system (open- or closed-loop control) the kind of components included in the design (man or machine control systems) the relationship of control to the decision process (organizational or operational control).
Statistical process control is appropriate to support any repetitive process, and has been implemented in many settings where for example ISO 9000 quality management systems are used, including financial auditing and accounting, IT operations, health care processes, and clerical processes such as loan arrangement and administration, customer ...
An optimal control is a set of differential equations describing the paths of the control variables that minimize the cost function. The optimal control can be derived using Pontryagin's maximum principle (a necessary condition also known as Pontryagin's minimum principle or simply Pontryagin's principle), [ 8 ] or by solving the Hamilton ...