Different Users and Use of Ratios explained

2 weeks ago

Introduction Ratios are essential tools for assessing the earning capacity, financial soundness, and operational efficiency of a business organization. Accounting…

Meaning of Accounting Ratios and Their Purposes

2 weeks ago

Accounting ratios are metrics used to compare two or more financial data points from a company’s financial statements to measure…

What are working capital sources and working capital management?

2 weeks ago

Working capital is the operating capital of a business which is used in its day-to-day operations, calculated as the current…

Emerging Role of the Financial Manager in India

2 weeks ago

A financial manager plays a pivotal role in overseeing the financial health of an organization. Their responsibilities encompass a wide…

The difference between Reserves and Provisions explained

2 weeks ago

Both reserves and provisions refer to the amount retained by an organization to deal with all possible contingencies in the…

How to Calculate Break Even Point and margin of safety?

2 weeks ago

Break-even point (BEP) is the point at which total costs and total revenue are equal, meaning there is no profit…

What is a common size balance sheet?

2 weeks ago

A common size financial statement is an income statement or balance sheet in which all items are expressed as percentages…

Relationship of Finance to Economics and Accounting

2 weeks ago

Finance, economics, and accounting are deeply interconnected disciplines that influence one another. A thorough understanding of any one of these…

How to Calculate length of holding period for stocks and receivables?

2 weeks ago

(A manufacturing unit needs to hold the stock of raw material, work-in-process, finished goods for a length of time in…

How to compute working capital limits under Turn-over method/Nayak committee

2 weeks ago

(Nayak Committee norms for computation of working capital limits) The term working capital means sum of the funds invested at various current…