Tag Archives | Notes

Quick Notes on Du Pont Chart | Accounting

The Du Pont Company of US pioneered a system of financial analysis which has received widespread recognition. As a useful tool for financial analysis, it has been adopted by many firms in some form or the other. The earning power, represented by return on capital employed, shows the combined effect of the net profit margin and the capital turnover. A [...]

By |2017-02-06T20:58:56+00:00February 6, 2017|Finacial Analysis|Comments Off on Quick Notes on Du Pont Chart | Accounting

Profitability Ratios and it’s Categories | Accounting

The profitability of the firm is also measured in relation to investments. The term investment may refer to total assets, capital employed or the owners' equity. The efficiency of an enterprise is judged by the amount of profits. But sometimes the conclusion drawn on the basis of profit-to- sales ratios may be misleading. Because it is possible that profit in [...]

By |2017-02-06T20:58:56+00:00February 6, 2017|Ratio|Comments Off on Profitability Ratios and it’s Categories | Accounting

Notes on Scrap | Materials

The below mentioned article provides a note on scrap. Scrap is the residue material that has a recovery value. It is incidental residue from the materials used in manufacturing operations which is recoverable and measurable without processing. Accounting of Scrap: The accounting treatment of scrap is based on the following considerations: (a) If the value of the scrap is negligible, [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Notes on Scrap | Materials
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