Yu Xing is a student accountant, who currently spends much of her time on audit work. While at a client’s premises, one of the directors of the client company asks for ‘ten minutes’ of her time to discuss a tax problem he has. He is intending to dispose of his holiday home in the south of the country, as it is too big for him and his wife, and he would like to know the tax implications. Yu Xing studied capital taxes a few months ago, and can remember a little about the treatment of second homes. She believes the client will be impressed if she can give him some advice, and she also hopes that her employer will be pleased with her performance. In order to reassure the client, Yu Xing displays an air of confidence as she sits down to discuss the director’s taxation affairs with him. What do you think about this
Answers
The director can't ask for such help. If Yu Xing helps the director of the company which she is auditing as a member of the audit team, regarding tax planning/ tax implications which arises on disposing off his holiday home, then it would affect the Independancy of Yu sing to audit that conpany/ firm. An Audit team should have no personal connection with client. If they have so, it would affect their Independancy. And the audit firm should be terminated.
Answer:
Working capital is the money available in day to day operation of a business.
Explanation:
This deals with short term accounts which include;cash,inventory,account receivable,account payable and dept due within a period of one year.The working capital measure a business operation liquidity,its efficiency and its general operations.Working capital is calculated by subtracting current liability from current assets.
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Explanation: