Month: February 2020
- Financial Management
Factors Governing the Dividend Decision
Dividends are an essential aspect of a company’s financial strategy. It is the distribution of profits to shareholders, which can be in the form of cash o
- Financial Management
Meaning of Treasury Stock and Its Accounting Treatment
Treasury stock is the stock issued by the company and may later be reacquired by the company from its shareholders. The company may retire or cancel these stock
- Financial Accounting Concepts
What is a Common-Size Financial Statement in Accounting?
A common-size financial statement is a financial statement where each line item is presented as a percentage of a base figure. The base figure is typically tota
- Financial Accounting Concepts
Classification of Accounts in Bookkeeping
The journal is the primary record book. All entries are made chronologically; that is when they occur. Transactions in the journal are documented using solely d
- Financial Accounting Concepts
How to Prepare Profit and Loss Account?
A profit and loss account, also known as the income statement or statement of revenues and expenses, is prepared to ascertain the profit earned or losses s
- Financial Accounting Concepts
What are Coverage Ratios – Meaning and Calculation
A coverage ratio is a measure of relative financial exposure to a specific contingent liability. The primary purpose is to quantify the ratio of net current ass