### Budget

Budget is a blueprint for the future course of action and activities. It means expressing the future course of action of an organization in quantitative......

### Activity Ratios

Activity ratios indicate the performance of the business. The performance of a business is judged with its sales (turnover) or cost of goods sold. These......

### Profitability Ratios

Profitability Ratios The efficiency of a business is measured by profitability. Profitability ratio measures the profit earning capacity of the business concern. A profitability ratio......

### Solvency Ratios

Solvency Ratios Solvency refers to the firms’ ability to meet its long-term indebtedness. It studies the firms’ ability to meet its long-term obligations. Moreover, the......

### Liquidity Ratios

Liquidity Ratios In accounting, the term liquidity is defined as the ability of a company to meet its financial obligations as they come due. Liquidity......

### Advantages of Ratio Analysis

Advantages of Ratio Analysis: Ratio is an expression of one number in relation to another. Ratio analysis is the procedure of formative and interpreting the......

### Expression of Ratios

Expression of Ratios: Ratio is an expression of one number in relation to another. Ratio analysis is the procedure of formative and interpreting the mathematical......

### Ratio Analysis

Ratio Analysis Ratio is an expression of one number in relation to another. Ratio analysis is the procedure of formative and interpreting the mathematical relationship......

### Limitations of Financial Statement Analysis

Limitations of Financial Statement Analysis Financial statements are final result of accounting work done during the accounting period. Financial statements normally include Trading, Profit and......

### Significance of Financial Statement Analysis:

Significance of Financial Statement Analysis: Financial statements are final result of accounting work done during the accounting period. Financial statements normally include Trading, Profit and......

### Financial Statements

Financial statements are final result of accounting work done during the accounting period. Financial statements normally include Trading, Profit and Loss Account and Balance Sheet.......

### Recording Depreciation

Recording Depreciation Depreciation is directly charged against the asset by debiting Depreciation account and crediting the Asset account. Depreciation account is closed by transferring to......