Need for a Uniform and Common Theory of Accounting
The frequent attempts by experts and professionals on having a “theory” that…
Gross Working Capital and Net Working Capital
Gross working capital means the investment in current assets, whereas the Net…
Management Accounting – Working Capital
Working capital is defined by experts as follows - “Working capital is…
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…
Ratio Analysis and its Applications
Ratio analysis is a medium to understand the financial weakness and soundness…
