Accountancy

The utility of cash flow analysis

            Cash flow analysis yields the following advantages: It is very helpful in understanding the cash position of the firm. This would enable the management to plan and coordinate the financial operations properly. Since it provides information about cash which would be available from operations the management would be in Read more…

By Anagha Sanil, ago
Accountancy

Analysis of operational efficiency

 The operational efficiency of an organisation is its ability to utilise the available resources to the maximum extent. Success or failure of a business in the economic sense is judged in relation to expectations, returns on invested capital and objectives of the business concern. There are many techniques available for Read more…

By Anagha Sanil, ago
Accountancy

Fixed assets Analysis

 The successful operation of a business generally requires some assets of fixed character. These assets are used primarily in producing goods and in operating the business. With the help of these, raw materials are converted into finished products. Fixed assets are not meant for sale and are kept as a Read more…

By Anagha Sanil, ago
Accountancy

Adjustment Entries

Because of the adopting of accrual accounting, after the preparation of Trial Balance, adjustments relating to the accounting period have to be made in order to make the financial statements complete these adjustments are necessary for transactions that have not been recorded but that affect the business ‘ financial position Read more…

By Anagha Sanil, ago