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Cost Accounting
How to calculate liquidity ratios?- With examples
The term liquidity refers to the ability of the firm to meet its obligations as and when due. The current liability of the company meets the realising amount fr
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Cost Accounting
What is a Perpetual Inventory System?
Businesses that use a perpetual inventory system maintain accurate records of the costs associated with each inventory acquisition and sale. These records show
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Financial Accounting Concepts
Closing Entries to Prepare Trading Account
With the completion of an accounting period comes the important activity of preparing the financial statements. The first thing one does in doing this, particul
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Financial Accounting Concepts
What is the Importance of Trading Account in Final Accounts
The Trading Account forms one of the critically important components of a company’s final accounts as it will determine gross profit or loss from its core
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Financial Accounting Concepts
What is Triple Bottom Line Reporting (TBLR)?
Triple Bottom Line Reporting (TBLR) is a new process that focuses on reporting, assessing and improving organisational performance for sustainability. This help
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Financial Management
What Are the Factors Governing Dividend Decisions?
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
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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
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Financial Accounting Concepts
Classification of Accounts in Bookkeeping
Bookkeeping is the basis of financial management. All business transactions must be systematically recorded and categorized in bookkeeping. Classification of ac
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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
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Financial Accounting Concepts
What are Coverage Ratios – Meaning and Calculation
A coverage ratio is a common metric used in financial analysis that determines how much of a company’s assets are covered by its liabilities. This ratio c