FA

Why at times liabilities can fetch over equity?: Whenever the return on equity (ROE) is more than the interest charged on liabilities it implies that we can go for liabilities instead of just owner’s equity…

Ratio Analysis in Financial Accounting: We do ratio analysis to evaluate company’s financial position and performance. These ratios are also used to evaluate trend, like compare current year numbers …

Lenders priority queue if a company is bankrupt: secured creditors, statutory dues (PF, retirement benefits, etc), employees, unsecured creditors, …

Consolidated Cash Flows: There are three types of cash flows that happen. 1. from operations – this generates profit, this profit is arrived at after taking non-cash…

Operating Cycle of any typical business: Cash – Raw Material, Work In Progress, …

Consolidated Balance Sheet: Consolidated Balance Sheet categorized into Assets & Liabilities…

All about financial accounting statements: Financial Accounting Statements are all about; 1. Balance Sheet (B/S); 2. Profit/Loss Account(P/L); 3. Cash Flow Statement

Journal, Ledger, Trial Balance and Financial Accounting: Journal is a book into which every transaction with a voucher gets recorded…

Forms of Organizations: Forms of an organization can be: Sole proprietorship (Single owner); Partnership (more than one owner up till 20); Companies

How to register a company?: Fill a form with the name of the company and other relevant details…

Authorized Capital, Subscribed Capital and IPOs: Authorized Capital – The capital raised by the owners…

Professional Courses in Accounting: Institute of Chartered Accounts of India which is constituted under constitution of India, governed by governing council. If one pass the exams conducted by this institute they become CA…

Finance Models in Accounting: Investors to the company could be in form of lenders OR shareholders. Since lenders are investing in the company, they have to get hold of accounting to decide on how …

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