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A method of expressing the relationship between one accounting result and the other, which is intended to give a useful comparison. Accounting ratios helps in measuring the efficiency and profitability of a corporation based on its financial reports. Accounting ratios outline the basis of fundamental analysis. It is also known as financial ratio.
An accounting ratio compares two facets of a financial statement, like the relationship (or ratio) of current assets to current liabilities. The ratios can be used to assess the financial condition of a company, involving the company's strengths and weaknesses. An instance of an accounting ratio is the price-to-earnings (P/E) ratio of a stock. This calculates the price paid per share with relation to the profit gained by the company per share in a particular year.
Q. Learning objectives of current ratio? - Analyze the transactions by examining source documents. - Journalize the transactions in the journal. - Post the journal entrie
“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.”
Q. Example of accumulated depreciation account? The accumulated depreciation account doesn't represent cash that is being set aside to change the worn out asset. The un-depreci
If Alisha Maintenance manufacturing has: total maintenance cost of $2,785,000 total fixed maintenance cost of $310,000 total variable maintenance cost of $2,475,000 total m
Q. What is dividend? One idea of the statement of retained earnings is to connect the income statement and the balance sheet. The statement of retained earnings describes the c
what is the accounting?
HOME Finance Company Limited made an after-tax profit of $3.172 million for the year ended June 30, 2008. Chairman James Datta said this was a milestone for the company, with a
Accountants frequently cite the going-concern assumption to justify using historical costs rather than market values in measuring assets. Market values are of less implication to a
Objective of Eight non-profit organization engaged in the conservation forest and wild animals
Q. Describe the Cost of sales? Cost of sales, cost of goods sold -- expense or cost of all items sold during an accountingperiod. Every unit sold has a cost of sales or cost of
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