Financial Gearing
Jennifer edwards Financial Gearing can be defined as a financial figure that is actually a relative proportion of debt and equity that is used by the business for performing its operations. If…
Financial Analysis
Financial Analysis is a process of analyzing, comparing and comprehending the financial information of the business to take important financial decisions. There are a number of situations in which we…
Limitations of Ratio Analysis
Ratio analysis is one of the best tools to build a picture of the financial position of a particular firm. Different entities such as credit analyst, stock analyst and lenders…
Cost Control
It is a process that involves series of steps taken by the business to control the cost of the business by controlling operations and activities related to the cost. There…
Comparative Balance Sheet
As the name indicates a comparative balance sheet is a balance sheet that provides side by side information of a business’s assets, liabilities and shareholder equity multiply in the same…
Sales Mix
Sales Mix is a mixture of different products and the services of a company that make a complete sale of that company. In most of the cases the sales of…
Indirect Materials
Indirect materials can be referred as materials that are used in the production and manufacturing process of a business but cannot be related directly to any product or some specific…
Goods in Transit
Goods in transit can be defined as the merchandise and the goods or the inventory that have been dispatched from the shipping dock of the seller but yet not received…
Dollar Value LIFO Method
The dollar value of LIFO method is an inventory method that is a minor variation of the Last In and First Out method of inventory costing. With the help of…
Single Step Income Statement
An income statement can be constructed in a number of different formats. The most simple and ready to make format is that of a single step income statement format. In…
The Present Value Factor
The Present Value factor that is also known as PV factor is a numerical figure having a value less than one that is used to derive the present value of…
Net Realizable Value
The net realizable value is a valuation technique that is used to value inventory. With the help of this technique you tend to calculate the market value of the inventory…
Expense Allocation
Expense allocation is a process of assigning indirect costs to the cost objects within the business. A cost object is an entity or any other thing with the help of…
What are Stock Repurchases?
Stock Repurchases is a process of buying back shares from the investors of the business. There are a number of reasons due to which a company undergoes repurchase process. Sometimes…
No Par Value Stock
This a type of the common stock that is issued without having a par value on the face of the stock certificate. As we know that the par value is…
Earned Capital
The net income of a business is sometimes given the name of the earned capital and may be referred to the retained earnings of a business that is left with…
Negative Retained Earnings
As we all know that retained earnings are the earnings that are left with the business after paying dividends to all the share holders from the profit earned by the…