Advantages of Cash Budget : 1. It helps in maintaining an adequate cash balance. 2. It provides the following useful information to the management a. to determine the future cash needs […]
All posts by Sneha Agarwal
Professional Tax Consultant and Article Writer
Cash Budget
Cash Budget: Cash budget is one of the most important budgets prepared by a business concern as every transaction directly or indirectly deals with cash. Cash budget shows the estimate […]
Preparation of cash budget – Methods
Preparation of cash budget – Methods : There are three methods by which a cash budget is prepared. They are 1. Receipts and Payments Method 2. Adjusted Profit and Loss […]
Characteristics Of Budget
Characteristics Of Budget : Budget has the following important characteristics 1. It is prepared in advance and relates to a future period. 2. It is expressed in terms of money […]
Definition Of Budget
Definition Of Budget: Budget is a blue print of future course of action and activities. Budget means expressing the future course of action of an organisation in quantitative terms. Longman’s […]
Other Illustrations
Other Illustrations: llustration : From the following calculate current ratio Babu Co. Ltd. Balance Sheet as on 31.3.04 Liabilities Rs. Assets Rs. Share capital 21,000 Fixed Assets 17,000 Reserves 4,000 […]
Table showing summary of Accounting Ratios
Table showing summary of Accounting Ratios : S.No Description of the Ratio Formula Notes 1. Current ratio Current assets include cash in hand, cash at bank, sundry debtors, bills receivable, […]
Meaning Of Cash Budget
Meaning Of Cash Budget : Cash Budget is a component of two words – cash and budget. The term “cash” here stands for cash and bank balance. “Budget” means, in […]
Profitability Ratios
III. Profitability Ratios : Efficiency of a business is measured by profitability. Profitability ratio measures the profit earning capacity of the business concern. The important profitability ratios are discussed below: […]
Activity Ratios
Activity Ratios : Activity ratios indicate the performance of the business. The performance of a business is judged with its sales (turnover) or cost of goods sold. These ratios are […]