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A method of expressing the relationship between one accounting result and the other, which is intended to give a useful comparison. Accounting ratios helps in measuring the efficiency and profitability of a corporation based on its financial reports. Accounting ratios outline the basis of fundamental analysis. It is also known as financial ratio.
An accounting ratio compares two facets of a financial statement, like the relationship (or ratio) of current assets to current liabilities. The ratios can be used to assess the financial condition of a company, involving the company's strengths and weaknesses. An instance of an accounting ratio is the price-to-earnings (P/E) ratio of a stock. This calculates the price paid per share with relation to the profit gained by the company per share in a particular year.
Q. Explain about Trial balance? Trial balance -- at the close of an accounting period, transactions posted in the ledger areadded up. A trial or test balance sheet is prepared
Determine the Purchasing Procedures Alarge company would use a "purchasing agent" who heads purchasing department. Small companies would use manager/owner, etc. Seller recei
The percentage analysis of changes of corresponding items in comparative financial statements is referred to as horizontal analysis. A. True B. False
owner invested 80000 cash and 2000 office equpmeent in to the business bank account
Liquidity refers to a company's cash position, availability of resources to meet short-term cash requirements, and overall ability to obtain cash in the normal course of business.
Explain the term- CASH SHORT AND OVER This account is used to record both a shortage and overage of cash in cash drawer. When change is made during a business day, mistakes can
What is accounting process?
Q. Understand how to account for transportation costs? FOB terms are particularly important at the end of an accounting period. Goods in transit after that belong to either the
Q. What do you mean by Contingent liabilities? Contingent liabilities -- liabilities which are not recorded on a company's financial reports though whichmight become due. If a
Question 1 Write a short note on the following with example a. Activating budgets b. Reversing journals c. Memorandum vouchers d. Optional vouchers e. Creating Bill of Materials
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