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Financial Ratios in Feasibility Study play a vital role in the decision making of the business. Most business owners rely on the financial statements given by their Accountants and not on Financial Ratios. Financial ratios have great contributions to business owners. Financial Ratios are the turning points in a feasibility study. Whether a project is feasible or not, financial ratios can answer it.
Published by Jeanette Dolotina 72 months ago in Accounting & Finance | +3 votes | 4 comments
The debit and credit entries in the book of accounts should correspond to the credit and debit entries in the bank statements. If they are not matched, then there is a need for bank reconciliation. The factors affecting bank reconciliation should be determined in order to come up with the appropriate action in the reconciliation of accounts.
Published by Jeanette Dolotina 72 months ago in Accounting & Finance | +4 votes | 8 comments
When a company uses financial leverage, it provides certain advantages for equity holders in terms of increasing operating profit and lowering income taxes, which in turn raises returned earnings. The use of financial leverage is closely related to the issue of capital structure, the relative level of capital financed by debt vs. equity. Different financing affects the profit bottom line.
Published by Jay Way 73 months ago in Accounting & Finance | +0 votes | 0 comments
Managing your accounts can be a very drastic task to fulfill and thatÂ’s why you have to at least know some financial accounting hints so you will at least have an idea what to do in almost every situation. According to a leading authority who published a recent financial accounting review, the growth of a business can only be maintained and improved if the assets and liabilities value are at manageable levels. Meaning, the liabilities cannot be more than the assets at any given time.
Published by toiken 73 months ago in Accounting & Finance | +0 votes | 0 comments
Double entry bookkeeping is accomplished with the accounting equation, Equity = Assets – Liabilities or derived as Assets = Liabilities + Equity. The sum of all the debits should be equal to the sum of the credits. In banking, credit refers to deposits and other transactions that will increase your account balance and vice versa, debits refer to withdrawals and other transactions that will decrease your account balance.
Published by Jeanette Dolotina 73 months ago in Accounting & Finance | +3 votes | 2 comments
This article looks at three reasons why financial reporting should not be regulated by standards and by law. The first argument brought up is the agency theory, the second involves the signalling theory and competitiveness, and the third is private contracting opportunities available for those who require information about firms.
Published by Braden Galea 73 months ago in Accounting & Finance | +4 votes | 1 comments
Get acquainted with the different accounts payable ratios that can be used in financial statement analysis. Computations for sales to accounts payable ratio, accounts payable turnover, and days purchases in accounts payable are presented
Published by Lindbergh Lendl Soriano 232 months ago in Accounting & Finance | +0 votes | 0 comments
Payday loans are great temptation for they are easily available and hence provide an easy way out when faced with financial crisis. However, are you doing the right thing? Here are a few questions that would be able to confirm whether a payday loan is a good idea in your case.
Published by swapna harrison 74 months ago in Accounting & Finance | +0 votes | 0 comments
Small business tax could be controversial, get the how to tips to withstand IRS tax audits and learn more about how to escape tax penalties in your small business
Published by forstine carter 74 months ago in Accounting & Finance | +3 votes | 0 comments
Private Finance Vs. Public Finance The basic principles of public finance and private finance are the same. Individuals and States are similar in that both need resources. Both have to secure maximum results from their resources. Both attempt to get the best out of all items of expenditure.
Published by Gazu Lakhotia 74 months ago in Accounting & Finance | +0 votes | 0 comments
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