Basics
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…
August 16, 2021 · Boomi NathanBasics
Basics
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.…
August 16, 2021 · Boomi NathanBasics
Limitations of Ratio Analysis
Although Ratio Analysis is a very useful accounting tools to analyze and interpret different accounting equations, it comes…
August 16, 2021 · Boomi NathanBasics
Advantages of Ratio Analysis
● It is powerful tool to measure short and long-term solvency of a company. ● It is a tool to…
August 16, 2021 · Boomi NathanBasics
Ratio Analysis and its Applications
Ratio analysis is a medium to understand the financial weakness and soundness of an organization. Keeping in mind…
August 16, 2021 · Boomi NathanBasics
Accounting Analysis
Comparative analysis and interpretation of accounting data is called Accounting Analysis. When accounting data is expressed in relation…
August 16, 2021 · Boomi NathanBasics
Management Accounting – Ratio Analysis
Ratio is an expression of relationship between two or more items in mathematical terms. Exhibition of meaningful and…
August 16, 2021 · Boomi NathanBasics
Cash Flow Indirect Method
● Two Balance Sheet requires. ● No need of Profit & Loss account in Indirect Method. ● Non Cash Item require.…
August 16, 2021 · Boomi NathanBasics
Non-Cash Transactions
Some investing and financing activities do not have any direct impact on cash flows. For example, conversion of…
August 16, 2021 · Boomi NathanBasics
Treatment of Some Typical Items
The treatment of some typical cash flow items is discussed below. Extraordinary Items Inflow or outflow of cash…
August 16, 2021 · Boomi Nathan