The statement of changes in financial position provides data that are not explicitly present in the balance sheet or the |
This type of financial statement is used to bridge the gap between the amount of equity the owners have in the business at the beginning of the accounting period and the amount of their equity at the ... |
The creation of your financial statements is largely a mechanical exercise. The numbers to be used are found in your accounting records after the books are closed at the end of the period; to draw up ... |
An easy way to spot trends in your balance sheet and income statement data from a number of years, or to compare your information with that of another company or industry group, is to use "common ... |
In order to assess how your business is doing, you'll need more than single numbers extracted from the financial statements. Each number has to be viewed in the context of the whole picture. |
Liquidity ratios are probably the most commonly used of all the business ratios. Your creditors may often be particularly interested in these because they show the ability of your business to quickly ... |
The current ratio is a way of looking at your working capital and measuring your short-term solvency. The ratio is in the format x:y, where x is the amount of all |
The quick ratio, also known as the acid test, serves a function that is quite similar to that of the current ratio. The difference between the two is that ... |
As a business owner/manager, you're concerned with making the best use of your assets and being a low-cost producer in your industry. You can determine how efficiently your business uses its assets, ... |
Inventory is the amount of merchandise, parts, supplies, or other goods your business keeps on hand to meet the demands of your customers. Depending on the nature of your business (i.e., retail, ... |
