Explanation

• The correct accounting equation is Assets = Liabilities + Equity.
• It shows that a company's assets are financed by liabilities and owners' equity.

Last verified on 14-08-2026

Explanation

• A statutory audit is mandatory because it is required by law.
• It is conducted to verify whether an organization's financial statements are true and fair.
• The audit is performed by an independent external auditor.
• The legal requirements for statutory audits vary by country and applicable laws.
• It enhances transparency, accountability, and public confidence.

Last verified on 05-08-2026

Explanation

• The main purpose of an independent audit is to help detect frauds and errors by examining financial records and expressing an independent opinion.
• An audit enhances the reliability and credibility of financial statements.
• Detecting every fraud is not the primary objective, but auditors help identify material misstatements caused by fraud or error.

Last verified on 21-07-2026

Explanation

• Current assets include cash or assets expected to be converted into cash within one year.
• Examples include cash, inventory, and accounts receivable.

Last verified on 21-07-2026

Explanation

• WACC stands for Weighted Average Cost of Capital.
• It is the average rate of return a company must pay to finance its assets through debt, equity, and other capital sources.
• WACC is widely used in financial management, investment decisions, business valuation, and capital budgeting.

Additional information:

• NPV: Net Present Value
• IRR: Internal Rate of Return
• EPS: Earnings Per Share
• ROI: Return on Investment

Last verified on 21-07-2026