An in-depth look at accounting ratios, which are vital tools in financial statement analysis to assess a company's performance and position.
Carrying costs, also known as holding costs or cost of carry, refer to the expenses associated with maintaining an inventory or financial position. These include opportunity costs, protective measures, wastage, and funding costs.
A Certified Financial Statement is a set of financial documents including the balance sheet, income statement, and possibly other related financial reports, that a Certified Public Accountant (CPA) has audited and attested to. These statements confirm that the financial records present fairly, in all material respects, the financial position and performance of a company in accordance with applicable accounting principles.
A method of accounting that evaluates a company's financial position based on its ability to adapt to changing environments and recognizes general price level changes. While favored by some academics, it has seen limited interest among practitioners.
The financial position of a firm reflects the status of its assets, liabilities, and equity accounts as of a certain time. This is depicted on its financial statement and is also known as financial condition.
A financial report consists of a firm's financial statements that provide information about its financial performance and position over a specific period.
Net Assets represent the total assets of an organization minus its liabilities and are crucial for evaluating the financial position and stability of a company.
Accounting records that are sufficient to show and explain an organization's transactions, enabling a company to disclose its financial position accurately and comply with statutory regulations.
In the USA, a quarterly report is a financial report issued by a company every three months, containing essential financial statements and a narrative overview of business operations.
An analysis of changes in the financial position of a firm from one accounting period to another; also known as the sources and uses of funds statement.
Sources of funds are various channels through which businesses obtain the capital required to operate and expand. They are detailed within the statement of changes in financial position, highlighting the increase in funds during an accounting period. Funds are typically defined as working capital or cash.
A Statement of Change in Financial Position is a financial report that provides detailed information about a company's sources and applications of funds over a specific period.
The SCFP is a financial statement that provides a detailed picture of a company's financial health over a specific period, highlighting the changes affecting working capital and non-working capital due to significant noncurrent transactions.
Statutory Books, as mandated by the Companies Act, ensure proper accounting records, enabling directors to accurately oversee the financial positioning and transactions of a company.
A subsequent event is a material happening that occurs after the date of the financial statements but before the audit report is issued. Footnote disclosure is required to inform financial statement users properly. Typically, such events have a significant impact on financial position or earning capacity.
