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TYPES OF FINANCIAL ANALYSIS
a) According to the material used, the study can be -
i) External analysis: Where analysis is done by exterior interested parties and
ii) Internal analysis: Where study is done by inner parties
b) According to the modus operandi of the study, the study can be -
i) Horizontal analysis: Where every single item in the declaration is analyzed over a numeral of years, so that its trend is known and
ii) Vertical analysis: Where a variety of items in a exact year's statement are analyzed so that inter relationships are understood.
Q. What is Net realizable value? Companies must not carry goods in inventory at more than their net realizable value. Net realizable value is the approximate selling price of a
Steps in recording business transactions Look at Exhibit 5 to observe the steps in recording and posting the effects of a business transaction. Note that a source document offe
Q. Explain about Going-concern concept? Except strong evidence exists to the contrary accountants assume that the business entity will continue operations into the indefinite
what will be the journal entry for this: A debit memo from the bank was received for bank charges P200.00
Mr. Horace, aged 25, has $25,000 cash to invest for his retirement. In addition, he plans to save and invest $8,000 per year (at the end of every year) for the next 40 years, at wh
Describe in brief about the Wholesalers They buy goods in bulk from manufacturers and sell them to retailers, other schools, wholesalers and other non-profit institutions, and
“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.
what do you mean by 90% of the entire issue to be received before the allotment of shares?
Uses of the Profit and Loss Account 1) The key utilize is to monitor and calculate profit. This suppose that the informat ion recording is correct. Significant harms can arise
Q. Learning objectives of Accounting theory? - Discuss and Identify the underlying assumptions or else concepts of accounting. - Discuss and Identify the main principles of
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