Advantages of Ratio Analysis Ratio analysis is widely used in the analysis of the financial well-being of a business and is crucial to the understanding of the performance of organisations…

What is Generally Accepted Accounting Principles (GAAP)? Generally Accepted Accounting Principles (GAAP) are a set of accounting standards, conventions, and rules used to prepare, present, and report financial statements of…

What is Financial Statement Reporting? Financial statement reporting is the process of presenting and disclosing an organization's financial performance and position to various stakeholders, including investors, creditors, regulators, and internal…

What is Financial Statement? A financial statement is a document that summarizes the financial transactions of a business or an individual over a specific period. It typically includes information on…

Trial balance is prepared to check the arithmetical accuracy of transactions in a journal. In case of agreement in a trial balance, it can be assumed that the recording, posting…

What is Ledger? A ledger refers to a book or register in which financial transactions are permanently recorded after being summarised and classified. We need to arrange the ledger accounts…

What is Accounting Process? The accounting process starts when any financial transaction is made in an organisation. The accounting process results in various financial statements, such as balance sheet, profit…

What is Financial Accounting? Financial accounting is the process of recording, summarizing, and reporting a business's financial transactions to external users, such as investors, creditors, and regulatory agencies. The goal…