Capital Structure Ratios

capital structure ratios

Capital structure ratios are also known as leverage ratios. Capital structure ratios may be defined as those financial ratios which measure the long term stability and structure of the firm. These ratios indicate the mix of funds provided by the owners and lenders and assure the lenders of the long …

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Functions of IASB

functions of iasb - fundamentalsofaccounting.org

Introduction International Accounting Standard Board (IASB) is an independent, private-sector body (previously known as IASC), based in London. IASB is committed to develop and approve a single set of global accounting standards (that is known as International Financial Reporting Standards), which require transparent and comparable information in general purpose of …

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List of Indian Accounting Standards (IND ASs)

Ind ASs

These are the converged Indian Accounting Standards (Ind ASs) hosted by MCA on its website. The date on which these will come into force is yet to be notified. Ind AS 101 First-time Adoption of Indian Accounting Standards Ind AS 102 Share-based Payment Ind AS 103 Business Combinations Ind AS 104 Insurance Contracts …

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Closing entries in Profit and Loss Account

Profit and loss account

We have already seen the entries required for preparing the Trading Account and for transferring the gross profit to the Profit and Loss Account. Now to complete the Profit and Loss A/c, the undermentioned entries will be necessary. (a) For items to be debited to the Profit and Loss Account …

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Final Accounts in Accounting

final accounts

Final Accounts After passing journal entries for events and transaction, posting them to ledgers and preparation of trial balance, the final step us to prepare final accounts. By final accounts, we mean manufacturing and trading account (only trading accounts in case of non-manufacturing entities), profit and loss accounts, and balance …

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Incomplete records system is unscientific

incomplete records system

Incomplete records system is unscientific, incomplete, inaccurate and unsystematic. Explain Incomplete records system, also known as a single entry system is not a standard practice like double-entry system based on dual aspect concept. The double-entry system is based on scientific dual aspect concept that makes it possible to scientifically locate …

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Absorption Costing

absorption costing

Absorption costing also known as full costing is conventional of ascertaining the cost.  It is the practice of charging all cost both variable and fixed to operation, processes and products. It is the oldest and widely used technique of ascertaining the cost. Under this technique of cost, the cost is …

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Methods of Prepration of Trial Balance

There are three methods of preparation of trial balance: Total method Balance method Total and balance method Now we shall understand each method in detail with logic and illustration as follows: TOTAL METHOD Under this method, every ledger account is totalled and that total amount (both of debit side and …

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