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Corporate Accounting
What is the Profitability Index?
The Profitability Index is simply the profitability of an investment (dividend yield plus the expected growth rate of the investment’s market value)
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Corporate Accounting
What is EPS? How to Calculate EPS?
Earnings per share (EPS) is one of the most important metrics for investors in the market since this tells how much profit a company has made on its shares
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Financial Accounting Concepts
What are Contingent Assets and Contingent Liabilities?
Contingent Assets Contingent assets are those in which the likelihood of economic profit depends completely on future occurrences that cannot be controlled
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Financial Accounting Concepts
What is the Current Ratio and Current Ratio Formula?
What is the Current Ratio? The current ratio is a measure of the short-term financial liquidity of a business. It is the ratio of current assets to current
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Corporate Accounting
What are Debentures and Why Are They Issued?
Debentures? Debentures are a type of corporate bond that is created by companies. The money borrowed to create debentures is called the face value. In exch
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Financial Accounting Concepts
What is Change in the Profit Sharing Ratio in Partnership Accounts?
Change in Profit Sharing Ratio There is a requirement for a valuation of goodwill whenever there is a change in the profit-sharing ratio of the current par
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Financial Accounting Concepts
Straight Line Method of Depreciation – Benefits and Limitations
Under Straight Line Depreciation, a fixed proportion of the original cost of the asset (less residual value) is written off each year so that the asset acc
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Financial Accounting Concepts
Differences Between Accounting Concepts and Conventions
Although to a layman, both accounting concepts and accounting conventions may sound similar, there are some fundamental differences between them. There are
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Cost Accounting
What is Performance Budgeting?
Performance Budgeting The process of performance budgeting entails evaluating an organization’s performance within the context of the organization
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Corporate Accounting
What are Different Types of Financial Statements?
Financial Statements Financial statements are very important in understanding the information available on how a business is doing and the risks associated
