How do the parties initiate mediation? The process for initiating mediation is based on whether the mediation is mandatory or voluntary. Mandatory mediation is subject to statutory or judicial procedures. Voluntary mediation is carried out subject to the agreement between the parties. What is Mandatory Mediation? Mandatory mediation is initiated pur...

Predetermined Overhead Rate Calculate Predetermined Overhead Rate...

What is Operating Cash Flow Ratio? The operating cash flow ratio, also known as the Cash Ratio or Cash Flow Ratio, ascertains if the cash flows obtained from the operations of a firm are adequate to cover the current liabilities.  Operating cash flow ratio= Operating cash flow / Current liabilities The formula can also be written as: Cash Ratio = (C...

What is the Percentage of Completion Method? The percentage of completion method is used in accounting to demonstrate how the revenue and expenses of a long-term project are realized based on the percentage of work that has been completed during the period.  The percentage of completion method offers a work-in-progress method of evaluating revenue a...

What is a Qualified Opinion? A qualified opinion is the opinion of an auditor over the financial statement of a company or information provided, stating that they are incomplete. In an audit, an audit is required to give a professional opinion about the financial data and information provided by a business. A qualified opinion is a report or opinion...

What are Expenses? An expense is the cost of an asset or service used to earn revenue. Restated, an expense is just what we use in the business operations.  The point at which we actually expense it is when we have used it.  Example of an Expense You are using electricity in your business. The cost of that electricity is going to be expensed. Your i...

What is an Unqualified Opinion? An unqualified opinion is otherwise known as an unqualified report or a clean report. It is the judgment of an independent auditor about a company which states that the financial records and statements are fairly and accurately presented without any shortcomings. This opinion also shows that a business is in complianc...

What is an Unrealized Loss? An unrealized loss is a loss that exists on paper which often results from an investor retaining an asset whose price or value has depreciated. An asset that has declined in value but is yet to be sold has an unrealized loss, the loss turns to a realized loss after the security has been sold. How Do Unrealized Losses Work...

What is a Traveling Auditor? A traveling auditor is any individual who spends an amount of time conducting audits in distant areas. This individual gathers the accounting data of a firm or company to file financial status reports and locate any form of misconduct in management or the business in general. Traveling auditors make sure that everything ...

What is Click Fraud? Click fraud is an illegal act where an individual, computer program or automated script click on paid search advertising without the intention of engaging the company or purchasing the product. Click fraud is rampant with pay-per-click (PPC) ads, it is the major problem that the industry is faced with. This type of fraud entails...