## Test your financial accounting knowledge #2341

A credit balance on an income and expenditure account for the club is dealt with by:

A. Adding to the accumulated fund

B. Subtracting from accumulated fund.

C. Adding to club’s bank balance

D. Showing as a prepayment in statement of financial position.

## Test your financial accounting knowledge #4321

Which one of the following statements is correct as regards the order of liquidity?

A. The most permanent asset appears first.
B. The least permanent asset appears first.
C. fixed assets appear before current assets.
D. long term liabilities appear before current liabilities.

## Why Do We Need Accounting?

What’s the point of accounting? If you ask an accountant that question, they may look at you like you’ve grown two heads. The real question should be, why wouldn’t we need accounting? It’s the backbone of our businesses and finances, the reason we were able to develop trade and commerce centuries ago. Without accounting, we wouldn’t have the […]

Why

Cash vs Accrual accounting. Cash accounting is when you received the cash you have to record it, and record your cash when it gets spent. You will need to use an accounting system online or use a notebook. That way you can get organized with your cash being recorded. If you have a small business […]

## Financial Operations Ratio-meaning and formula

The efficiency of the financial management of a firm is calculated through the financial operations’ ratio. This ratio is a calculating device of the cost and the return of financial charges. This ratio signifies a relationship between net profit after tax and operating profit.

## The formula for the computation of this ratio is:

Financial Operations Ratio =net profit after tax/operating Read the rest

## Current Ratio – meaning and formula.

The most widely used measure of the liquid position of an enterprise is the current ratio, that is, the ratio of the firm’s current assets to current liabilities.

It is calculated by dividing current assets by current liabilities:

Current Ratio = current asset/current liabilities

The current assets of a firm represent those assets which can be in the ordinary course … Read the rest

## Current budgets – definition

Current budgets are prepared for the current operations of the business. The planning period of a budget generally in months or weeks. As per ICMA London, “Current budget is a budget which is established for use over a short period of time and related to current conditions.” … Read the rest