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Determine the Traditional classification
a) Balance sheet or position statement ratios: balances sheet ratios deal with the relationship among two balance sheet item e.g., the ratio of current assets to current liabilities or the ratio of proprietors funds to fixed assets. Both the item must however pertain to the same balance sheet. The various balance sheet ratios have been named in the chart classifying statement ratios.
b) Profit and loss account or revenue/income statement ratio: these ratio deal with the relationship among two profit and loss accounts item e.g., the ratio of gross profit to sales of the ratio of net profit to sales. Both the item must however belong to the same profit and loss account. The various profit and loss account ratio commonly used is named in the chart classifying statement ratios.
c) Composite/mixed ratio or inter statement ratios: these ratios deal with the relation among a profit and loss account or income statement item and a balance sheet item e.g., stock turnover ratio or the chart exhibiting classification or statement ratios.
Accounts Payable Turnover Ratio is a short-term liquidity measure which is used to calculate the rate at which a company pays off its suppliers. Accounts payable turnover ratio is
Exercises 2-1, 2-2, 2-3, 2-4 Problem 2-14 I didn’t write every question down out of the book just questions 2-1, and 2-2. Exercise 2-1 classifying manufacturing cost. Your boat,
Transportation Problem-Solution Solution of the Transportation Problem: The fundamental steps of the transportation method are: Step 1: Determine a preliminary b
Types of Factoring The factoring facilities can be largely categorized in four groups that are as follows: 1) Full service non-recourse (old line) 2) Full service rec
Explain Management accounting Meaning & definition: Management accounting is comprises of two words, Management and accounting. It is the study of managerial aspect of the ac
The least-cost method The process is described as follows: Assign as much as possible to the variable with the least unit cost in the whole tableau. (Ties are broken randomly).
using the operating cycle and any financial management knowledge discuss the applicability of such cycle to poultry business in Uganda (consider broilers)
Under this method, approximation is made of payments and cash receipts in the ensuring period. The dissimilarity of these payments and receipts indicates deficiency or surplus of c
Define the modes of Hybrid Instrument? 1. What are a variety of investment risks. Describe them. 2. Define the modes of Hybrid Instruments and clarify their features.
Accounting Method is the method by which income and expenses are accounted for taxation purposes. The Internal Revenue Service needs taxpayers to select an accounting method that p
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