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 [...]
The following points highlight the four main types of accounting. The types are:- 1. Adjusting Entries 2. Transfer Entries 3. Closing Entries 4. Opening Entries. Types # 1. Adjusting Entries: It is a normal practice to make entries in the accounting records on cash basis (revenues and expenses actually received and paid). However, there is a need to formulate accounting [...]
In this article we will discuss about:- 1. Introduction to Funds Flow Statement 2. Meaning and Definition of Funds Flow Statement 3. Concept of Flow of Funds 4. External Sources Include of Funds 5. Applications of Funds Flow. Contents: Introduction to Funds Flow Statement Meaning and Definition of Funds Flow Statement Concept of Flow of Funds External Sources Include of [...]