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Bond= Bond is that type of Certificate which is issued on the basis of interest usually issued by Government or any corporation for the purpose of raising money. The owner of the bond receives fixed amount announced with the bond details for the given period of time. Characteristics of Bonds= Besides the type of bonds , Following are the characteristics of the bond: There are short term and long term bonds Short term bonds are repayable for less than one year and more than one year after the date of issuance. Long term bonds are repayable for more than five years, ten years and thirty years after the date of issuance of the bonds. Face value of the bond is payable to the bondholders at the time of maturity. Serial bonds are those whose maturity dates are different from each other. Bond indenture is the term used for the bond contracts. Bond issuer pays interest according to the conditions decided on the contract.

Bond= Bond is that type of Certificate which is issued on the basis of interest usually issued by Government or any corporation for the purpose of raising money. The owner of the bond receives fixed amount announced with the bond details for the given period of time. Types of Bonds= There are many types of Bonds given below: Mortgage Bonds: Mortgage Bonds are issued by the corporation based on real estate holdings business. In case of any default or unpaid amount to the bond holders, the bondholders are eligible to sell the property of the corporation to cover his investments. Redeemable Bonds: This type of bond can be redeemed by the corporation or by the government which means the bond which can be redeemable by the issuer at the time of maturity of the bond. Adjustable Bonds: Adjustable bonds are that type of bond which is issued by corporation at the time of construct or form a new structure which is also known as restructuring period of corporation.

Cost Accounting System= Cost accounting system is that type of accounting system which is used to calculate costs of various items and the costs related to the items manufactured in the business, its main purpose is to provide information to decision makers for making different type of decisions for managing and growing business in order to make business successful. Uses and Benefits= It is used to calculate and define manufacturing costs of various items. It is also used to explain the process about which costs will better serve the customers. The cost accounting system helps to observe the effectiveness of all the operations of the business. It helps to plans the functions of the activities. Controlling different functions related to various activities of the business is easy by using cost accounting system. Same as many other uses and benefits this system can evaluate employee performances. Through this system we can reward the deserving employees. This system is al

Job cost sheet= It is that type of document which is used to track the cost of given job in job cost sheet. Job cost sheet follows job order costing system in order to record all the manufacturing cost related to the specific job. This sheet is completed after the completion of job. The main purpose of job cost sheet is to track or to find costs related to the job recorded in the sheet.                                         Job cost sheet for ABC Company. Job Number____________                        Date initiated _______________ Supervisor _____________                       Date Completed _____________ Items __________________                     Units Completed _____________    Direct Materials            Direct Labor     Manufacturing Overhead Req.no Amount Ticket Hours Amount Hours Rate Amount

Where the Job order costing and Process costing are different from each other there are also some similarities between them. The similarities between them are following:   Similarities Between Job order costing and Process costing 1. In job order costing and process costing the main objective is to define the costs of the product. 2. Both of these have the same purpose to impose costs to material, labor and overhead to determine the unit cost of the product. 3. In both, inventory accounts are same regarding raw material, work in progress and finished goods. 4. Besides inventory accounts other accounts are also same which is known as manufacturing accounts (i.e. direct material, direct labor, production overhead etc.)    5. In job order costing, the process used to assign overhead is the same as in the process costing.

We can understand the difference of job order costing and process costing from their definitions . However we can differentiate them in effective way by following way :      Difference Between Job order costing and Process costing Job order costing Process costing It Involves custom orders according to the demand. Products are large in volume irrelevant to the order. Few products manufactured in job order different from each other costing based on the order. In this many products are manufactured which are similar to each other. Product flexibility is high because of heterogeneous products. Product flexibility is low because of similar products. In job order costing standardization is low or medium not high. In process costing standardization is high as compared with job order costing. Production level is lower because of order based production of heterogeneous items. Production

Job order costing= Job order costing is that system which is used to prepare different types of products and which is used for different types of jobs, job order costing helps to define cost per unit for each job. Each unit cost contains direct costs and overhead cost related to the job. Uses= It is used to produce order based products instead of mass products. It is used for the production of large volume, unique and high cost items. All the costs related to job order costing can be measured relevant to each job. Example= Job order costing is applicable in many businesses some examples are following: In printing business, building construction, it is also applicable in hospitals, Schools, Universities and law firms. Process costing= Processing cost is that cost which is implemented to all the units produced in the manufacturing process.it helps to define cost per unit processed which includes direct and indirect manufacturing costs. In Process cos

Definition= Financial statements shows all the records of financial activities of the business or the company which explains the position of the business or the company. Financial statements are that type of documents which shows all the details related to finance including debit details and credit details. User Types= Generally there are two type of users who require financial statements. Internal users: Internal users involves members from inside the business for example these members includes Managers, Officers and Internal Auditors etc. External users: External users involves users from outside the business. Which are not working members of the business as internal users are for example shareholders, Lenders, customers, etc. Financial statement Benefits= The main benefit of financial statements is that this provide financial data of the business which is useful for both internal and external users. For internal users it is required because ma

Cash Budget and its benefits= Budget which is prepared for dealing and managing cash and cash related issues is called cash budget. Cash budget is mainly used by management for the purpose of planning and forecasting future cash flows. It also helps the management in following ways: It helps management in coordinating activities through which every employee can be guided and helped to complete the given task in efficient way. It helps management to be aware of available resources in advance by checking cash budget, which also lets management to plan future activities according to available resources and save a lots of time. As other budget do cash budget also helps in evaluating the performance of the activities within the business. Through cash budget management can delay liabilities payments to manage cash for other business activities. Idle cash could be planned to be easily invested with the help of cash budget. This type of budget also helps to manage cash recei

Cash flow can be prepared with the help of two methods. Both of these methods are widely used in various companies according to their requirements however I.A.S (international accounting standard) allow all the firms and companies to prepare cash flow with any of these methods. (i) Direct method (ii) Indirect method Both the Direct and indirect methods of cash flow can be understood with the example given below. Direct Method= It explains cash details in authentic way. In direct method, entries are made on Accrual basis related to cash.                                                              Statement of  Cash Flows (Direct Method-Format)                                                                      for the XYZ company                                                              for the period 1 st July – 30 th June             Cash Flows from Operating Activities: Add: Cash Receipts from revenue from operations