Internal rate of return (irr) is defined as that discount rate which equates the present value of future cash flows of a security to its market value. Irr is viewed as the average annual rate of return that investors earn…
Dividend is the shareholders return on their investment/capital in the company. And it is the part of distributable profits which has been paid out to them. Content 1. Definition of dividend 2. Types of dividend i) Classification is based on…
There are three Golden rules of accounts are as follows: 1. Debit the receiver , Credit the giver 2. Debit what comes in, Credit what goes out. 3. Debit all expenses and losses , Credit all incomes and gains. Let…
Marginal costing means change in total cost due to production of an additional unit of output. And it is a variable cost applied to the unit cost. Index 1. What is marginal cost? 2. What is marginal costing ? 3.…
Cost volume profit(CVP)analysis is important tool of profit planning & provides information about following i.e. cost, profit and volume. Content 1. Meaning of Cost volume profit(CVP)analysis 2. What is the meaning of break even analysis and formula? 3. Elaboration of…
Profitability Ratios is an accounting ratio measuring the profitability of the business. And Efficiency is measured by profitability. Further, different ratios are determined using accounting information collected from the financial statements. Profitability ratio shows the final result of the company.…
Petty Cash Book is prepared to record small payments such as telegram, taxi fare , cartage and stationery etc. In a business house a number of small payments such as for telegrams, taxi fare , cartage etc. have to be…
Cash transactions are straight way recorded in the cash book & on the basis of such record ledger accounts are prepared. What is Cash Book? All cash transactions are recorded in the cash book. All transactions in cash book have…
Earning Per Share (EPS) means profit and loss attributable to equity shareholders of a company and this measure companies profitability. Further, an entity shall calculate basic earning per share for profit or loss attributable to ordinary equity shareholders of the…
Going concern concept is an fundamental accounting assumption that an enterprise is a going concern & will continue its operation in future. What is going concern concept in accounting? Going concern concept is one of the basic accounting assumption that…