Category: FINANCIAL ACCOUNTING

Difference between Financial Accounting Management Accounting and Cost accounting

January 23, 2022June 9, 2025 commerceiets

In this post you will study Difference between Financial Accounting Management Accounting and Cost accounting. Study and make the proper notes grabbing full understanding of this topic. MANAGEMENT ACCOUNTING Management Accounting is the Identification, Measurement, Accumulation, Analyses, Preparation, Interpretation and Communication of information that assists managers in fulfilling organizational objectives. Management accounting is all about…

LIQUIDITY RATIOS

December 27, 2019 commerceiets No Comments

LIQUIDITY RATIOS The liquidity ratios are 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 out of…

CASH RATIO

December 22, 2019October 10, 2026 commerceiets No Comments

CASH RATIO OR ABSOLUTE LIQUID 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…

CURRENT RATIO FORMULA

December 21, 2019October 10, 2026 commerceiets No Comments

CURRENT RATIO FORMULA Current ratio explains the relationship between current assets and current liabilities. This ratio is also known as working capital ratio. This ratio is a measure of general liquidity and is most likely to make the analysis of the short term financial position or liquidity position of the firm. It is calculated by…

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FINANCIAL ACCOUNTING, 12 ACCOUNTANCY

RATIOS

December 21, 2019 commerceiets No Comments

RATIOS Ratio is an arithmetical expression of relationship between two interdependent or related items. It may be defined as indicated quotient of mathematical expression. Accounting ratios are numerical relationship between two accounting variables. It indicates a quantitative relationship which is used for analysis and decision making. ACCORDING TO ACCOUNTANT’S HANDBOOK BY WIXON, KELL AND BEDFORD…

FINANCIAL RATIO ANALYSIS

December 21, 2019 commerceiets No Comments

FINANCIAL RATIO ANALYSIS Financial Ratio Analysis is the process of determining and interpreting relationships between the items of financial statements to provide a meaningful understanding of the performance and financial position of an enterprise. Ratio analysis is basically a technique of: Establishing meaningful relationship between significant variables of financial statements And interpreting the relationship to…

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12 ACCOUNTANCY, FINANCIAL ACCOUNTING

DIFFERENCE BETWEEN COST ACCOUNTING AND FINANCIAL ACCOUNTING

November 22, 2019 commerceiets No Comments

DIFFERENCE BETWEEN COST ACCOUNTING AND FINANCIAL ACCOUNTING The difference between cost accounting and financial accounting is as follows: COST ACCOUNTING Cost Accounting is an art or process of recording, analyzing and classifying of expenditure for the purpose of product costing or service costing, ascertainment of profitability, operational planning and cost control. It is a forward…

COST ACCOUNTING, FINANCIAL ACCOUNTING, KEY DIFFERENCES

DIFFERENCE BETWEEN TRANSACTION AND EVENT

November 19, 2019March 1, 2025 commerceiets

DIFFERENCE BETWEEN TRANSACTION AND EVENT Before understanding the difference between transaction and event, one must clearly understand the two concepts. TRANSACTION Transaction refers to any exchange of goods and services on cash or credit basis by the business with the outside parties i.e. other business or customer. Transaction is an economic activity. It has an…

FINANCIAL ACCOUNTING, 11 ACCOUNTANCY, KEY DIFFERENCES

TRANSACTIONS

November 18, 2019March 25, 2025 commerceiets

TRANSACTIONS Transactions refer to any exchange of goods and services on cash or credit basis by the business with the outside parties i.e. other business or customer. Transaction is an economic activity. It has an effect on the net worth or financial position of the business. FEATURES OF TRANSACTION The following are the features of…

USERS OF ACCOUNTING

November 17, 2019 commerceiets No Comments

USERS OF ACCOUNTING Accounting provides the information to the users of the business. Various users are interested to know about the financial position of the business, which they get from the accounting records kept by the business and provided to them by way of publishing final accounts. The users of accounting are as follows: INTERNAL…