Tag Archives: #FinancialStatementAnalysis

What is the difference between Financial, Cost and Management Accounting?

Financial, Cost and Management Accounting Financial, Cost and Management accounting are three different branches of accounting that serve different purposes. Here’s a brief overview of each: 1.Financial Accounting: Financial accounting focuses on preparing financial statements and reports that provide information about a company’s financial performance and position. The primary users of financial accounting information are… Read More »

How to do business valuation calculation?

Business Valuation Calculation Business valuation Calculation refers to the process of determining the economic worth of a business, and there are various approaches available to calculate it. These approaches include: 1.Market Approach: This method utilizes comparable market data of recently sold businesses that are similar. By comparing the business with other similar businesses in the… Read More »

What is the difference between books of Accounts and Financial Statements?

Books of Accounts and Financial Statements Books of accounts and financial statements are two different concepts in accounting. A books of account refer to the records maintained by a company or business to keep track of its financial transactions. These include records of all the financial transactions made by the business, such as sales… Read More »

What are the different types of financial transactions and its effects to the assets, liabilities, and owners equity?

Types of Financial Transactions There are various types of financial transactions that can impact a company’s assets, liabilities, and owner’s equity. Here are some examples: 1.Inventory purchase: This transaction increases the company’s assets (inventory) and its liabilities (accounts payable). To visit- https://www.mca.gov.in/ 2.Selling goods on credit: This transaction increases the company’s assets (accounts receivable) and… Read More »

What are some of the key differences in financial statement analysis versus stock/asset valuation techniques?

Difference between financial statement analysis and stock/asset valuation techniques It involves reviewing a company’s financial statements, such as its balance sheet, income statement, and cash flow statement, to evaluate its profitability, liquidity, solvency, and overall financial performance. This analysis helps investors and analysts to make informed decisions about whether to invest in the company or… Read More »

How are sundry expenses treated in a balance sheet?

How are Sundry expenses treated in a balance sheet Sundry expenses are generally treated as an expense in the income statement of a business and are deducted from the revenue earned to arrive at the net income or profit for the period. They do not appear as a separate item in the balance sheet. But… Read More »