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Q. Explain Vertical analysis?
Vertical analysis demonstrates the percentage that each item in a financial statement is of some significant total such as total assets or sales. For example in the Hewlett-Packard data we can see that cash and cash equivalents were 15.3 percent of total assets as of 1999 October 31 and had declined to 10.0 percent of total assets by 2000 October 31. Whole current assets (cash plus other amounts that will become cash or be used up within one year) increased from 61.3 percent of total assets to 68.3 percent during 2000. Long-term investments as well as other non-current assets accounted for 18.4 percent of total assets as of 2000 October 31.
WHAT DO YOU MEAN BY ACCRUAL CONCEPT
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Q. What is Variable cost? Variable cost -- a cost which changes as production or sales change. If a business is producingnothing and selling nothing, variable cost must be zero
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Q. Explain about Conservatism? Conservatism The Conservatism means being prudent or cautious and making sure that assets and net income are not overstated. Such overstatements
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