Tips and secrets on how to pass the Certified Public Accountant (CPA) Board Exam

Passing the CPA Board Exam is one tough task for anyone who aims to become a Certified Public Accountant. It is described by many critiques as one of the most difficult professional board exam an aspiring professional can take. This is true since accounting requires both theoretical and mathematical skills to fully absorb its knowledge and expertise. During my time of review and before I passed the CPA Board exam, I realized some simple reflections that greatly helped me in reaching my dream of becoming a CPA. Whenever people ask me for advices on how to pass the CPA test, the following are my answers: Read more

External Auditing of Financial Statements: Its Importance to Your Company and Business

Do you have your own company? Do you prepare financial statements for tax, loans and other compliance purposes? If yes, then you may already experience appointing a C.P.A. (Certified Public Accountant) to audit your financial statements. According to GAAS (Generally Accepted Auditing Standards), auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. Read more

What are cash and cash equivalents?

Cash and cash equivalents are the most liquid assets that are reported in the asset section of a company’s balance sheet. It is the first account of your balance sheet and accordingly in your chart of accounts. Cash includes money and any other negotiable instrument that is payable in money and acceptable by the bank for deposit and immediate credit. This means that cash includes bills, coins, checks, bank drafts and money orders because they are acceptable by the bank for deposit or immediate encashment. Postdated checks are not considered as cash yet because these checks are unacceptable by the bank for deposit and immediate credit or outright encashment. These checks will only be considered as cash when their indicated dates arrive. Cash must be unrestricted in use. This means that an item to be recognized and reported as cash must be readily available in the payment of current obligations and not subjected to any restrictions. Read more

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