The Return on Assets Ratio (ROA) shows how well a company uses its assets in order to generate profits. ROA is one of the profitability ratios that are used to understand and assess whether the...
Category: Tutorials
Bank reconciliations form a critical part internal control systems. In this article we look at why this process is so important to businesses worldwide.
Days Payable Outstanding (DPO), or as it’s also called, creditor days ratio (CDR), is an efficient formula that shows how long it takes for a company to repay its suppliers.CDR is used together...
The verification process in double-entry bookkeeping is critical to ensuring data accuracy; bank statement statements and their reconciliation to bank records form an essential part of this...
The Debtor Days Ratio shows how quickly a company turn the credit sales made into cash. It’s therefore reasonable that the smaller the debtor days ratio, the quicker a company is able to collect...
Liabilities are financial arrangements (normally called debt or loans) that create an obligation on a business to expend economic benefits to a third party. The accounting for liabilities is through...