Transaction Error Rate
Jennifer edwards It is quite common to observe transaction error while conducting the financial transactions. The cost of correcting these errors is far greater than the cost of prohibiting these errors initially.…
Sales to working Capital Ratio
In order to generate and maintain sales a business needs to invest some of its working capital. This working capital is invested in accounts receivable and the inventory of the…
Return on Capital Employed
The return on the capital employed is a financial indicator that is used to measure the proportion of adjusted earnings of the business to the amount of capital and debt…
Reorder Level
Reorder Level is a term related to refilling the inventory. It is the level where a business, company or firm should order for a new purchase or start manufacturing a…
Accounts Receivable Collection Period
The accounts receivable collection period can be defined as a period that is required to collect the accounts receivables for a business. In order to calculate the accounts receivable collection…
Accounts Payable Days
Accounts payable days is the measure of the number of days that a company needs to pay its suppliers. If the number of days required for the payment increase from…
Sales Backlog Ratio
The Sales Backlog Ratio is a financial measurement of the ability of a business to maintain the current level of the sales of the business. This ratio is recorded on…
Classified Balance Sheet
A classified balance sheet is a kind of balance sheet in which the assets, liabilities and equity accounts are further categorized into sub accounts or sub categories. The classification of…
Return on Operating Assets
The return on operating assets is a financial ratio that deals with the measurement of revenue that is generated only from those assets that are actively being used. The major…
Computerized Accounting
A computerized accounting system is a automated accounting system where the use of computer technology is used to manage the accounting processes of a business. A computerized accounting system is…
Accounting System
An accounting system is a type of computerized information system that helps a business in maintaining and managing its accounts and financial transactions. A business has a very complex accounting…
Difference between Bill of Exchange and Cheque
A cheque is a kind of bill of exchange that is drawn on a specific bank or bank and is payable only on demand. There is a considerable difference between…
Information Analysis
Information can be defined as the processed form of data. When data is collected, inspected, cleaned and filtered it is transformed into the information. Information can be used by the…
Disadvantage of Cost Accounting
Cost Accounting is not a logical and scientific branch of accounting as compared to the other branches. Cost accounting lacks a uniform procedure that can be applied to the businesses…
Consigned Stock
A consigned stock is a stock that is legally owned by one company but physically kept by another company. The profit, loss, risks and rewards associated with the consigned stock…
Market Value Added
The market value added is a concept in accounting that deals with the difference between the market value of the business and the capital invested to run the business. If…
Net Worth Ratio
Net worth ratio is the ratio that shows the net worth of the investment of an investor made within the company. This ratio depicts the return that the shareholder is…
Net Profit Ratio
The Net profit ratio is the financial figure that shows the net profit gained by the business after paying the taxes. It can also be defined as the ratio between…