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Accounting ratios that determine a firm's ability to convert various accounts within their balance sheets into sales or cash.
Companies will usually try to shift their production into cash or sales as soon as possible as this will usually lead to higher revenues. These types of ratios are often used when doing fundamental analysis on different companies. The inventory turnover ratio and asset turnover ratio and are excellent examples of activity ratios.
What is Budgetary control Budgetary control is the process of determining various budgeted figures for the enterprises for the future period and then comparing the budgeted fi
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Innova uses 1,056 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct material
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opening stock 19000 closing stock 21000 sales 200000 gross profit 25% on sales calculate stock turnover ratio
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