All posts by Sneha Agarwal - 2. page

Professional Tax Consultant and Article Writer

Classification of Ratios: The classification of ratios on the basis of purpose is as follows:

Solvency Ratios Solvency refers to the firms ability to meet its long term indebtedness. Solvency ratio studies the firms ability to meet its long term obligations. The following are the […]

I. Liquidity Ratios : Liquidity Ratios measure the firms’ ability to pay off current dues i.e., repayable within a year. Liquidity ratios are otherwise called as Short Term Solvency Ratios. […]

Advantages of Ratio Analysis : Ratio analysis is an important technique in financial analysis. It is a means for judging the financial soundness of the concern. The advantages of accounting […]

Ratio Analysis: Ratio is an expression of one number in relation to another. Ratio analysis is the process of determining and interpreting the numerical relationship between figures of financial statements. […]

Definition Of Financial Statement Analysis : In the words of Kennedy and Mc Millan “the relationship of an item to another expressed in simple mathematical form is known as a […]

Limitations of Financial Statement Analysis: Analysis of financial statements helps to ascertain the strength and weakness of the business concern, but at the same time it suffers from the following […]

Significance of Financial Statement Analysis: 1. Judging the earning capacity or profitability of a business concern. 2. Analysing the short term and long term solvency of the business concern. 3. […]

Revaluation Method: Under this method, the assets like loose tools are revalued at the end of the accounting period and the same is compared with the value of the asset […]

FINANCIAL STATEMENT ANALYSIS : Financial statements are final result of accounting work done during the accounting period. Financial statements normally include Trading, Profit and Loss Account and Balance Sheet. The […]