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 TYPES

December 28, 2019 commerceiets No Comments

LIQUIDITY RATIOS TYPES 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…

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12 ACCOUNTANCY, FINANCIAL ACCOUNTING

LIQUIDITY RATIOS FORMULA

December 27, 2019 commerceiets No Comments

LIQUIDITY RATIOS FORMULA 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…

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12 ACCOUNTANCY, FINANCIAL ACCOUNTING

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…

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…