Author: commerceiets

MANAGEMENT AND BUSINESS ADMINISTRATION

December 23, 2019 commerceiets No Comments

MANAGEMENT AND BUSINESS ADMINISTRATION Management and Business Administration are the two terms that are used interchangeably and synonymously. Management refers to the art of getting things done through others. Administration refers to the function of determining the corporate policy and supervising the overall functioning of the concern. Various viewpoints discussed regarding these two terms are…

BUSINESS MANAGEMENT, KEY DIFFERENCES

FUNCTIONAL AREAS OF MANAGEMENT

December 22, 2019March 1, 2025 commerceiets

FUNCTIONAL AREAS OF MANAGEMENT Management is universal in nature. It is used everywhere. Its scope is not limited to the business only, wherever there is group of persons, management automatically comes into existence. The functional areas of management are as follows: PRODUCTION MANAGEMENT Production management is also known as Operations Management. Production means the creation…

BUSINESS MANAGEMENT

LIQUIDITY RATIO ANALYSIS

December 22, 2019 commerceiets No Comments

LIQUIDITY RATIO ANALYSIS The liquidity ratio analysis is used to assess the short term financial position of the firm. Liquidity refers to the ability of the firm to meet its current liabilities. That is why these ratios are also known as ‘short-term solvency ratios’. These ratios indicate the firm’s ability to meet its current obligations…

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12 ACCOUNTANCY, FINANCIAL ACCOUNTING

CASH RATIO

December 22, 2019 commerceiets No Comments

CASH RATIO Cash Ratio is a type of liquidity ratio that is calculated to analyze the short term solvency or financial position of the firm. It is calculated to exclude the receivables from the current and liquid assets and to know about the Cash assets. Although receivables, debtors and bills receivables are generally more liquid…

ACID TEST RATIO FORMULA

December 22, 2019 commerceiets No Comments

ACID TEST RATIO FORMULA Acid Test Ratio, a type of liquidity ratio, may be defined as the relationship between Acid Test or Acid Test assets and current liabilities. An asset is said to be Acid Test if can be converted into cash within a short period without loss of value. The Acid Test ratio is…

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12 ACCOUNTANCY, FINANCIAL ACCOUNTING

QUICK RATIO AND CURRENT RATIO

December 22, 2019 commerceiets No Comments

QUICK RATIO AND CURRENT RATIO The difference between Quick Ratio and Current Ratio is as follows: BASIS OF DIFFERENCE QUICK RATIO CURRENT RATIO RELATIONSHIP It establishes the relationship between Liquid assets and current liabilities. It establishes the relationship between current assets and current liabilities. ASSESSMENT It assesses the ability to meet current liabilities immediately. It…

12 ACCOUNTANCY, FINANCIAL ACCOUNTING, KEY DIFFERENCES

QUICK RATIO FORMULA

December 22, 2019 commerceiets No Comments

QUICK RATIO FORMULA Quick Ratio, a type of liquidity ratio, may be defined as the relationship between quick or quick assets and current liabilities. An asset is said to be quick if can be converted into cash within a short period without loss of value. The quick ratio is also known as liquid ratio or…

QUICK RATIO

December 22, 2019 commerceiets No Comments

QUICK RATIO Quick Ratio, a type of liquidity ratio, may be defined as the relationship between quick or liquid assets and current liabilities. An asset is said to be liquid if can be converted into cash within a short period without loss of value. The quick ratio is also known as Liquid ratio or acid…

ABSOLUTE LIQUID RATIO FORMULA

December 22, 2019 commerceiets No Comments

ABSOLUTE LIQUID RATIO FORMULA Absolute Liquid Ratio is a type of liquidity ratio that is calculated to analyze the short term solvency or financial position of the firm. It is calculated to exclude the receivables from the current and liquid assets and to know about the absolute liquid assets. Although receivables, debtors and bills receivables…

12 ACCOUNTANCY, FINANCIAL ACCOUNTING

ABSOLUTE LIQUID RATIO

December 22, 2019 commerceiets No Comments

ABSOLUTE LIQUID RATIO Absolute Liquid Ratio is a type of liquidity ratio that is calculated to analyze the short term solvency or financial position of the firm. It is calculated to exclude the receivables from the current and liquid assets and to know about the absolute liquid assets. Although receivables, debtors and bills receivables are…

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12 ACCOUNTANCY, FINANCIAL ACCOUNTING