How to Understand Financial Ratios

Businesses use financial ratios to compare performances of various business activities over a period of time. Since trends keep changing with time, it is recommended comparing ratios of current year to earlier years as calculating ratios for one year doesn’t … Continue reading

Relationship Between Financial Statements

Companies essentially need to prepare four financial statements. Fundamentally, all these statements comprise of same series of accounting entries, but each statement focuses on a different financial aspect. It is important to understand the relationship between financial statements to know … Continue reading