In accounting parlance window dressing in the balance sheet is the technique by which financial statement is made to reveal a better picture than the actual position. Let us study here how a balance sheet can be window dressed. Window dressing in balance-sheet: Date of balance sheet coinciding with the end of the season instead of 31st March.…
Commercial Banks extend varieties of credit facilities to different types of customer viz. Individual, Sole Proprietor, Partnership firm, HUF, Trust, Club, Societies, Association, Limited Company, Public Sector Undertaking, Consortium advance etc. Depending upon type of borrower and nature of credit facilities required, bank will call for certain non-financial papers to examine along with financial papers.…
The analysis of financial statements means identifying the financial strength and weakness of a business establishment by interpreting and inferring the financial statements of the establishment. These statements cannot be analysed by the mechanical method as a financial statement is designed to give the fair view, not accurate. A careful, patient and informed analysis is a must…
The term working capital means the sum of the funds invested at various current assets used in the operating cycle, by the industrial and trading establishments. Operating cycle means the length of time required to convert ‘Non-Cash current assets’, (like raw material (RM), work in process (WIP), finished goods (FG), and receivables) into cash. The types…