Financial Statements

Ratio Analysis is broadly categorized into four main types; Liquidity Ratios, Activity Ratios, Profitability Ratios, & Leverage Ratios.

Prepare Balance Sheet in 8 Easy Steps The most crucial thing is to balance it when we are talking about how to prepare a balance sheet. No, itโ€™s not. There are some important points to follow to get accurate results. Here, you go. In this article, you will get clear insights on how to prepare …

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You know you can prepare your income statement in just a click. In ADโ€™s income statement template, you just have to put your figures and you will get your income statement in a minute.

The current ratio of a company identifies the ability of a company to pay its short-term financial obligations.

Preparing an income statement requires 8 steps: Calculate Net Sales, Calculate COGS, Calculate Gross Profit, Calculate Operating Expenses, Calculate Operating Income, Calculate EBIT, Calculate EBT and Calculate Net Income.

Is Petty Cash An Expense Account or Asset Account? Petty Cash is not an expense account, it is an asset account.

Three methods of preparing Cash Budget: 1.Receipt and payment method 2.Adjusted profit & loss method/Cash Flow Method 3.Balance Sheet Method.

Four easy steps to prepare cash budget: Define the period, Decide the desired cash position, estimate cash inflows outflows.

Using cash flow analysis ratios, a company seeks out how much cash it has, where its cash is going, and what it needs to do to maintain!

Cash Flow Statement helps to track cash inflow and outflow. CFS has three main parts: operating, investing, and financing activities.

Working Capital is the leftover amount after paying operating expenses whereas the Current Ratio determines the efficiency of current assets over current liabilities.ย 

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