Tag Archives | Financial Accounting

How to Prepare Income Statement of Manufacturing Business? | Financial Accounting

It is necessary to learn how to prepare income statement for manufacturing business. In a manufacturing business enterprise, there is a need to prepare a manufacturing account, statement of production or a cost sheet, before proceeding ahead to prepare the income statement. In fact, the income statement literally remains the same except that the cost of goods manufactured is transferred [...]

By |2018-08-01T10:47:23+00:00August 1, 2018|Income Statement|Comments Off on How to Prepare Income Statement of Manufacturing Business? | Financial Accounting

How to Prepare Funds Flow Statement? (With Stages) | Financial Accounting

Funds flow statement is a method by which we study changes in financial position of a business enterprise between two accounting periods. It is prepared with the help of two balance sheets of an enterprise. Broadly speaking, preparation of funds flow statement involves two stages, namely – 1. Statement or schedule of changes in working capital 2. Statement of sources [...]

By |2018-08-01T10:47:23+00:00August 1, 2018|Funds Flow Statement|Comments Off on How to Prepare Funds Flow Statement? (With Stages) | Financial Accounting

5 Main Classification of Ratios (With Formula)| Financial Accounting

This classification is based on the purpose for which an analyst computes these ratios. For easy understanding and to achieve the purpose of ratios effectively, ratios may be classified as:- 1. Profitability Ratios 2. Coverage Ratios 3. Turnover Ratios/Activity Ratio 4. Financial Ratios/Liquidity Ratio 5. Leverage Ratios/Long-Term Solvency Ratios. These are discussed one by one below: 1. Profitability Ratios: The [...]

By |2018-08-01T10:47:23+00:00August 1, 2018|Ratio|Comments Off on 5 Main Classification of Ratios (With Formula)| Financial Accounting
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