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Financial ratios have been categorized in a variety of manners. You may determine the subsequent broad bases having been utilized in current literature:
Primacy Criterion: This distinguishes a measure that could be considered helpful for all kinds and sizes of business enterprises, from many other measures that are not so universal in usage. The first one has been termed as the Primary Ratio that is: the Return on Investment or the ROI and the other category termed as Secondary measures comprises all other ratios. Such measures will fundamentally vary among firms and they will choose only such of those measures as are relevant for their requirements. The British Institute of Management utilizes this classification for inter-firm comparisons.
Ratios tagged to requirements of interest groups: The main interest groups identified for this reason are:
A) Management
B) Owners
C) Lenders
Such classification assumes that 'management group' is various from 'owner group'.
ACCOUNTS REQUIRED This can be summarized depending on the nature of the situation. In a receivership you may be required to prepare a receivers receipt and payments. In the pro
Q. A prior period adjustment that corrects income of a prior period requires that an entry be made to a. an income statement account. b. a current year revenue or expense account.
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The standard EOQ analysis is depends on the assumption which the price per unit keeps constant irrespective of the size of the order. While quantity discounts are obtainable, that
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