What is Defensive Internal Ratio? Defensive Internal Ratios is otherwise called as Basic Defensive Interval Ratio and Internal Measure Ratio. This ratio is calculated to find out whether
Quick Ratio | Acid Test Ratio | Liquid Ratio Quick ratio may be defined as the relationship between quick / liquid assets and current or liquid liabilities. Liquid
Direct Material Mix Variance Direct material mix variance is a part of direct material usage variance. If only one type of material is used for production, there is
Direct Material Usage Variance Direct material usage variance is otherwise called as Direct Material Quantity variance. It is a part of direct material cost variance. According to ICMA,
What is Material Price Variance? Material Price Variance is the part of direct material cost variance. According to ICMA, London, “It is that portion of the direct material
Direct Material Cost Variance It is otherwise called as Direct Material Variances. It is the difference between the standard cost of materials used for the actual output and
Average Collection Period Formula The formula to find out average collection period is Average Collection Period = Total Accounts Receivable / Credit Sales Per day. Here, the Total
What is flow of funds? Flow means movement. The term movement includes inflow and outflow. Here, flow of funds means transfer of economic values from one asset of
Limitations of financial statements Most of the limitations are due to recorded facts, accounting rules and conventions and personal judgements. If proper care is taken and specifically prepare
Essentials of Good Financial Statements A proper analysis and interpretation of financial statements enables the interested parties to judge the profitability and financial strength of the business. Hence,