Posted by geemiz | Posted in MAS | Posted on 06-12-2010
This article is the continuation of the two part article on learning ratio analysis. The first part of the article which was posted few days ago discusses the meaning of ratio analysis and other terms of ratio analysis like financial statement analysis and the technique being used. Now we are going to continue learning about the two other techniques of financial statement analysis which is the Profitability ratio and the Solvency Ratio.
Profitability Ratio
This is the company’s ability to gain profit.
Rate of Return or Return on Investment – measures the net income generated by each dollar of investment.
Posted by geemiz | Posted in MAS | Posted on 27-11-2010
Ratio Analysis also known as Financial Statement Analysis is one important topic in Cost Accounting and an integral part of Management Advisory Services. Most students are having difficulty in dealing with this topic because of the many formulas to remember. Given below are the key points one must remember in financial ratio analysis and is the easy way to study the financial statement analysis.
What is Ratio Analysis?
Ratio Analysis is the process of identifying company’s financial strengths and weaknesses. This is done by properly establishing relationships between financial accounts in the financial statements namely the statement of financial position and statement of comprehensive income.
Posted by geemiz | Posted in Practical Accounting 1 | Posted on 17-11-2010
One statement being made before computing the total amount of cash both on hand in bank is the statement of bank reconciliation. This statement is not one of the basic financial reports that every company must make annually but this statement is necessary to reach the true amount of cash. This article is not intended to discuss about Bank Reconciliation because this was discuss in a different page. This write up is consist of the lists of formulas being used in computing for adjusted cash on hand or in bank, the total amount of outstanding check and the total amount of deposits in transit.
Posted by geemiz | Posted in Theory of Accounts | Posted on 14-11-2010
One important process in accounting is what you call bank reconciliation. This is to compare the cash transaction in your cash bank account and the cash balance in your own book. Actually this is a statement to be made monthly showing if the cash balance per ledger account and the cash balance per bank agrees.
Bank Reconciliation’s Reconciling Items
Book Reconciling Items
