Dividing the activities of the business related to cash and cash equivalents is known as Classification of Cash Flow Statement. What is the Classification of the Cash Flow Statement? Classification of Cash Flow Statement means dividing all activities related to Read More …
The financial statement of the business included the three statements theses are Trading and Profit/loss account, Balance sheet and Cash flow statement. It is also a very important statement which shows the actual flow of cash i.e. inflow and outflow Read More …
Profitability Ratios are used to know the profitability of the business. It covers five types of ratios which are discussed in this article. Meaning of Profitability Ratios: The meaning of the profitability ratios is cleared from its name itself. The Read More …
Activity Ratios are used to know the performance of the resources of the business. It covers four types of ratios which are discussed in this article. Activity or Performance Ratios: Activity ratio is used to check out the way of Read More …
Solvency Ratios show the capacity of the company to repay its long term liabilities by realising the total assets. It is also the basic ratio of the accounting ratios to know the companies financial position. Meaning of Solvency Ratios: Solvency Read More …
Liquidity Ratios show the capacity of the company to repay its current liabilities by realising the current assets. It is the basic ratio of the accounting ratios. Meaning of Liquidity Ratios: Liquidity refers to the capacity of the business to Read More …
The ratios are used to the analysis of the two or more any type of related items and express them in arithmetic expression but Accounting Ratios are used to analyze the only related financial items. What is Accounting Ratio? “Accounting Read More …
The Common-Size Statements show the percentage to a common base of all individual accounts of the financial statements of the two or more years together i.e. balance sheet and profit/loss account. What are Common-Size statements? The Common-Size statement is that Read More …
The Comparative Statements is the group account wise comparative study of the financial statements of the two or more years together i.e. balance sheet and profit and loss account. What are Comparative statements? The comparative statements are that statement which shows Read More …
Financial Statement Analysis is the process of analysing the financial position of the company with the help of standardised statements. Meaning of Financial Statement Analysis: It means the process of systematic analysis of the financial information of the company for Read More …