Posted inBasics
The Accounting Equation
The accounting equation! Probably sounds intimidating. Don’t worry, it really is as simple as ABC.…
Posted inBasics
What are Assets and Liabilities in Accounting
The words “asset” and “liability” are two very common words in accounting. Some people simply…
Posted inBasics
An Overview of Contracts and Why They are Important to Business and Society
Contracts govern all transactions whether they are between firms or between firms and private individuals.…
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Need for a Theory of Accounting to Improve the Accounting Profession
Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an…
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Need for a Uniform and Common Theory of Accounting
The frequent attempts by experts and professionals on having a “theory” that would guide accountants…
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Working Capital Cycle
Generation and disbursement of cash is carried out in the manner depicted by the following…
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Gross Working Capital and Net Working Capital
Gross working capital means the investment in current assets, whereas the Net working capital means…
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Management Accounting – Working Capital
Working capital is defined by experts as follows - “Working capital is the amount of…
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Management Accounting – Useful Ratios
Short–term Financial Position or Test of Liquidity(a) Current Ratios= Current AssetsCurrent Liabilities(b) Quick or Acid…
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Classification on the Basis of Financial Aspects
Ratios can be further classified based on their functional aspects as discussed below. Liquidity Ratios…