Category: Accountancy

Table of Contents Ratios and Key Performance Measures Competitiveness Reports Financial Statements Reference List Ratios and Key Performance Measures Accounting Ratios and Ratio Analysis Accounting (financial) ratios are used in accounting for measuring the efficiency and profitability of businesses based on their financial reports. Such ratios offer businesses a tool for expressing connections between different…

Introduction Strategic management is founded on strategic fundamentals. Management accounting provides a theoretical framework and a language of discourse for three levels of approaches including pre-enactment, declaration and implementation. Performance indicators are linked to the benchmarking practices and are often identified using specific piloting procedures in order to ensure best higher education programs that meet…

Income Statement Super Kool Industries Income Statement For the Year ended Dec 31(AED) 2017 2018 Sales Revenue 300,000 350,000 Less: Cost of goods sold 120,000 168,000 Gross Profit 180,000 182,000 Less: Operating expenses 68,100 84,724 Income before interest & tax 111,900 97,276 Less: Interest Expense 3,900 8,647.5 Income before tax 108,000 88,628.5 Less: Tax (30%)…

The significance of GAAP cannot possibly be underrated. The framework allows for a uniform approach toward financial reporting, thus, making the process of monitoring simpler and more successful (Goldstein, 2017). Incorporating key ratios it shows the whole picture of a company’s performance. GAAP allows considering essential factors that affect a company’s financial performance when making…

Table of Contents Introduction Using Historical Costs and Valuation Models Conclusion Reference List Introduction The aim of IAS 16 is to recommend an accounting action for property, plant, and equipment (PP&E) to assist clients with an informed knowledge of its operations (Elliott & Elliott 2017). The PP&E challenges in accounting include assets realization, the assurance…

Table of Contents Substance over Form Creative and Fraudulent Accounting Motivating Factors Ratio Analysis Limitations Conclusion Reference List Some companies tend to participate in so-called “creative accounting,” which primarily serves the purpose of altering their financial reports to achieve some objective. The practice can be considered unethical, but it is not necessarily fraudulent or illegal,…

Table of Contents Key Performance Indicators for Management Accounting Customer Service References Key Performance Indicators for Management Accounting The decision to open an e-shop was a strategic move that will help this company to increase its sales, improve revenue generation, and manage market competition in a more effective way than when it only had brick-and-mortar…

Table of Contents Determining Costs for Including in Inventory Amounts of Inventory to Be Reported on the Balance Sheet Appropriateness of the Lower of Cost or Market Rule References Determining Costs for Including in Inventory There is only one criterion for determining the costs, which should be included in the inventory – their relation to…

Role of accounting Accounting plays a major role in running the financial matters of a business enterprise. This involves qualified personnel preparing financial statements to guide the business in the decision-making process (Bartov & Mohanram, 2014). Such decisions involve transactions with government agencies, stockholders, employees, banks, suppliers, and business owners (Webster, 2003; Thukaram, 2007). Accounting…

What is meant by the term “efficient markets” (semi-strong)? If the markets are efficient (semi-strong), then how does that affect financial accounting standard setting? If they are not efficient (semi-strong), then how does that affect financial accounting standard setting? Semi-strong market efficiency denotes a situation where markets reflect all information available in the public domain.…