Basics 1 min read
Management Accounting – Working Capital
Working capital is defined by experts as follows – “Working capital is the amount of funds necessary to cover the…
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Basics 3 min read
Management Accounting – Useful Ratios
Short–term Financial Position or Test of Liquidity (a) Current Ratios = Current AssetsCurrent Liabilities (b) Quick or Acid Test or…
Basics 3 min read
Classification on the Basis of Financial Aspects
Ratios can be further classified based on their functional aspects as discussed below. Liquidity Ratios Liquidity ratios are used to…
Basics 2 min read
Ratio Classification on the Basis of Financial Statement
Balance Sheet Ratios Ratios calculated from taking various data from the balance sheet are called balance sheet ratio. For example,…
General Concepts 3 min read
Residue Curve Maps
The most simple form of distillation, called simple distillation, is a process in which a muticomponent liquid mixture is slowly boiled…
Basics 2 min read
Limitations of Ratio Analysis
Although Ratio Analysis is a very useful accounting tools to analyze and interpret different accounting equations, it comes with its…
Basics 1 min read
Advantages of Ratio Analysis
● It is powerful tool to measure short and long-term solvency of a company. ● It is a tool to measure profitability…
Basics 1 min read
Ratio Analysis and its Applications
Ratio analysis is a medium to understand the financial weakness and soundness of an organization. Keeping in mind the objective…
Basics 1 min read
Accounting Analysis
Comparative analysis and interpretation of accounting data is called Accounting Analysis. When accounting data is expressed in relation to some…
Basics 1 min read
Management Accounting – Ratio Analysis
Ratio is an expression of relationship between two or more items in mathematical terms. Exhibition of meaningful and useful relation…