Accounting Basics

Contracts govern all transactions whether they are between firms or between firms and private individuals.…

Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an…

The frequent attempts by experts and professionals on having a “theory” that would guide accountants…

Generation and disbursement of cash is carried out in the manner depicted by the following…

Gross working capital means the investment in current assets, whereas the Net working capital means…

Working capital is defined by experts as follows - “Working capital is the amount of…

Short–term Financial Position or Test of Liquidity(a) Current Ratios=                                            Current AssetsCurrent Liabilities(b) Quick or Acid…

Ratios can be further classified based on their functional aspects as discussed below. Liquidity Ratios…

Balance Sheet Ratios                                      Ratios calculated from taking various data from the balance sheet are called…

Although Ratio Analysis is a very useful accounting tools to analyze and interpret different accounting…