What is Accounting Period?
The accounting period refers to the time period for which accounting books are balanced. The preparation of financial statements is done by business entities… Read Article
Owner’s Equity
Owner’s Equity: MeaningIn simple terms, the definition of owner’s equity can be stated as “A part of the total value of a company’s assets… Read Article
How is Debenture different from Bank Loans, Equity Shares and Bond?
A debenture is a way of borrowing money at a fixed or floating rate of interest without assigning any assets of the company as… Read Article
Capital Rationing – Its Assumptions, Advantages and Disadvantages
Capital rationing is a common practice in most companies as they have more profitable projects available for investment than the capital available. In theory,… Read Article
What is Accounting?
Accounting can be defined as the process of maintaining financial records and estimates and using the information to make critical financial decisions. In simple… Read Article
Types of Capital Rationing – Hard and Soft
Capital rationing is the strategy of picking up the most profitable projects to invest the available funds. Hard capital rationing and soft capital rationing… Read Article
How to Analyze and Improve Debt to Total Asset Ratio?
The total debt to total asset ratio is a solvency ratio that evaluates a company’s total liabilities as a percentage of its total assets.… Read Article
How to Analyze and Improve Asset Turnover Ratio?
The asset turnover ratio is an important financial ratio for understanding how well the company utilizes its assets to generate revenue. It is imperative… Read Article
How to Reduce Current Ratio and Why?
The current ratio is one of the crucial financial ratios. It is a measure of the company’s liquidity, and hence it is important to… Read Article
Net Income (NI) vs. Net Operating Income (NOI) Approach
The difference between the net income and operating income approach of capital structure is mainly due to the role of capital structure, the cost… Read Article
How to Analyze (Interpret) and Improve Quick Ratio?
Companies calculate the quick ratio to handle the defects present in the current ratio. The acid-test ratio is a more progressive alternative to the… Read Article