Management Accounting – Useful Ratios
Short–term Financial Position or Test of Liquidity(a) Current Ratios= Current AssetsCurrent Liabilities(b)…
Classification on the Basis of Financial Aspects
Ratios can be further classified based on their functional aspects as discussed…
Ratio Classification on the Basis of Financial Statement
Balance Sheet Ratios Ratios calculated from taking various data from the balance…
Limitations of Ratio Analysis
Although Ratio Analysis is a very useful accounting tools to analyze and…
Advantages of Ratio Analysis
● It is powerful tool to measure short and long-term solvency of a…
Ratio Analysis and its Applications
Ratio analysis is a medium to understand the financial weakness and soundness…
Accounting Analysis
Comparative analysis and interpretation of accounting data is called Accounting Analysis. When…
Management Accounting – Ratio Analysis
Ratio is an expression of relationship between two or more items in…
Cash Flow Indirect Method
● Two Balance Sheet requires. ● No need of Profit & Loss account in…
Non-Cash Transactions
Some investing and financing activities do not have any direct impact on…


