Posted inAccounting Basics
Need for a Theory of Accounting to Improve the Accounting Profession
Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an…
Posted inAccounting Basics
Matching Concept
Matching concept is based on the accounting period concept. The expenditures of a firm for…
Posted inAccounting Basics
Need for a Uniform and Common Theory of Accounting
The frequent attempts by experts and professionals on having a “theory” that would guide accountants…
Posted inAccounting Basics
Working Capital Cycle
Generation and disbursement of cash is carried out in the manner depicted by the following…
Posted inAccounting Basics
Gross Working Capital and Net Working Capital
Gross working capital means the investment in current assets, whereas the Net working capital means…
Posted inAccounting Basics
Management Accounting – Working Capital
Working capital is defined by experts as follows - “Working capital is the amount of…
Posted inAccounting Basics
Management Accounting – Useful Ratios
Short–term Financial Position or Test of Liquidity(a) Current Ratios= Current AssetsCurrent Liabilities(b) Quick or Acid…
Posted inAccounting Basics
Classification on the Basis of Financial Aspects
Ratios can be further classified based on their functional aspects as discussed below. Liquidity Ratios…
Posted inAccounting Basics
Ratio Classification on the Basis of Financial Statement
Balance Sheet Ratios Ratios calculated from taking various data from the balance sheet are called…
Posted inAccounting Basics
Limitations of Ratio Analysis
Although Ratio Analysis is a very useful accounting tools to analyze and interpret different accounting…