An understanding of the conceptual bases of the corporate financial reporting system and the preparation of financial statements are essential prerequisites for a good accountant or a financial analyst. Financial reporting is the communication of financial information of an enterprise to the external world. Corporate financial reporting is a series of activities that allows companies…
Dubai World Central is the development currently under construction in Dubai, United Arab Emirates. It will be an economic zone to support a number of activities including logistics, aviation, commercial, exhibition, humanitarian, residential and other related businesses around Al Maktoum International Airport with the planned annual capacity of 12 million tones of cargo and 160…
Valuation of Goodwill is an important function of the finance department of an organization. Good will is an intangible asset but not fictitious. Although it is not tangible and it is not used like plant and machinery, furniture and fixtures, land and building, but like other tangible asset it contributes to the profit earning capacity…
Ratios are among the most popular and widely used tools of financial analysis. A ratio expresses a mathematical relation between two quantities. To be meaningful, a ratio must refer to an economically important relation. For example, there is a direct and crucial relation between an item’s sales price and its cost. Accordingly, the ratio of…
Cash Management means managing the cash in currency form, bank balances and readily marketable securities. Cash is the most important component of working capital of a firm. Cash is the life blood of the business, so managed well means the business remains healthy and strong. Each firm holds cash to some extent at any point…
Analyzing the profitability of a company is a major part of financial statement analysis. All financial statements are pertinent to profitability analysis but none is more important than the income statement. The income statements reports the company’s operating results over a period of time. Operating results are the primary purpose of a company, and play…
The terms finance, finance function and financial management are all used interchangeably for the discipline related to managing of money matters. Money is the life – blood of the business and all the economic activities are carried out through the use of money. Management of finance is very crucial for the effective functioning of any…
Working capital can be understood as the fund required for meeting the day to day expenses of the business entity. An effective management of the working capital is very essential for the success of the organization. Working capital can be understood in two ways i.e. Gross and Net working capital. Gross working capitals are those…
The financial executives of an organization have to perform variety of tasks to discharge their huge responsibility of handling the finance functions of the organization. The responsibility of the finance manager has been going beyond keeping records, reports, the firm’s cash position, paying bills, obtaining funds and now they are into the decision making processes…
Book keeping in the context of a business is simply the recording of financial transactions of an organization. Transactions include purchases, sales, receipts and payments by an individual or organization. There are many people who consider accounting and bookkeeping are same. The thing is accounting process includes the bookkeeping function and is just one part…
