Audit report is an official, signed document that provides the details regarding the purpose, scope, and findings of the audit. So, in 1959, the AI CPA created the Accounting Principles Board APO, which also got dissolved in 1973 for lack of productivity and failure to act promptly. Risk adjusted return is subtracting the rate of return of one asset from the rate of return of another asset, both asset having similar risks. Unabsorbed costs are those, which occur when the cost structure does not fully reflect all variable and/or fixed costs. They are required to make judgements regarding how to record business transactions. Purchase discount is the discount given by the seller to the business for purchases. This will cause the imported goods from UK to become cheaper for the consumers in the US. Manufacturing overheads include all the indirect labour costs, indirect material costs, and indirect expenses used for manufacturing.
Cash dividend is the share of the company profits that is given to the shareholders as dividend. Capital profit is the distribution of cash due to tax savings on account of depreciation, sale of a fixed asset, or any other sources that are not related to retained earnings. Operating Ratio = Operating Expenses / Operating Revenues Operating revenue is the revenue earned on the basis of day-to-day operations like sales. The important aspects of the transaction should not be missed out by neglecting the fine print. Interest rate is a percentage of the total investment/debt at which the interest amount is given/paid. Thus, asset based approach is good for them.