current ratio

Current Ratio - meaning and formula.

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

5 disadvantages of consolidated financial statements

5 disadvantages of consolidated financial statements.

Consolidated financial statements are the “Financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent (company) and its subsidiaries are presented as those of a single economic entity”.

The following are shortcomings of consolidated financial statements:

Unprofitable companies are set off against

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Mwaikusa ltd revision question on ratio analysis

Mwaikusa Ltd a trading company commenced business in central Kigali in 2016, preparing its financial statements to 31 October.  The directors of Mwaikusa Ltd are trying to assess the financial performance and financial position of the company for the year ending 31 October 2017.  The

Following information has been extracted from the financial statements of … Read the rest