Author: John Ng

Test of Control in Audit

Internal controls refer to the rules and procedures within a company to ensure the integrity of financial and accounting information. These controls are essential to running a company. Similarly, they help with business continuity and ensure the accuracy of the financial reporting process. Internal controls are also a vital part …

Synergy in Merger and Acquisition

Synergy is a term that has been used in business for decades. Mergers and acquisitions are often justified by the need to create synergy, which can mean cost savings or increased revenue. But what does it really mean? What different types of synergies exist, and how do they work? This …

Amortized Cost vs Fair Value

There are various methods of valuing bonds that companies may use. Among these, the prevalent method is using the amortized cost technique of valuation. However, some companies may also evaluate their bonds using the fair value method. There are some differences between both of them. It is better to understand …

Price to Book Ratio

Investors can use various ratios to calculate the value of their investments. Each of them illustrates a different aspect of the investment, which can help investors in their decision-making. Among these, one ratio is the price-to-book (P/B) ratio. What is the Price-to-Book Ratio? The price-to-book ratio is a comparison of …

Price Earnings (P/E) Ratio of Stocks

The price-to-earnings (P/E) ratio represents the relationship between the market value of the stock of a company and its earnings per share (EPS). It is one of the most commonly used and well-known ratios used by investors in valuing the stocks of a company. Other names for the P/E ratio …