Financial Accounting and Statement Analysis Formulas

Posted by admin on Apr 21, 2026 in Financial and Accounting Management | 0 comments

Liquidity

Current Ratio = Current Assets ÷ Current Liabilities
Quick Ratio = (Cash + A/R + Short-term Investments) ÷ Current Liabilities
Working Capital = Current Assets − Current Liabilities

• High Working Capital: Strong ability to pay short-term debts
• Low Working Capital: Higher liquidity risk
• Impacts operating cash flows on the Statement of Cash Flows

Contingent Liabilities (Warranties)

Record liability and expense if both criteria are met:

1. Probable future loss
2. Amount can be reasonably estimated

Bonds

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Non-Profit and Governmental Accounting Essentials

Posted by admin on Mar 10, 2026 in Financial and Accounting Management | 0 comments

F6: NFP & Governmental Accounting

NFP Financial Statements

NFP Financial Statements

NFP Cash Flows

Statement of Financial Position (Balance Sheet): Assets – Liabilities = Net Assets Statement of Activities (Income Statement) Statement of Cash Flows Net Assets Classification: Without Donor Restriction: Available for general use. Board-designated funds are considered internal and are not donor-restricted. With Donor Restriction: Restricted by purpose or time. Temporary in Nature: Restriction expected to

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Income Tax Act: Capital Gains, Clubbing, and Loss Set-offs

Posted by admin on Mar 5, 2026 in Financial and Accounting Management | 0 comments

Understanding Capital Assets: Short-Term vs. Long-Term

The distinction between a Long-Term Capital Asset (LTCA) and a Short-Term Capital Asset (STCA) is based purely on the period of holding. This classification is crucial for determining tax rates and indexation benefits.

Feature	Short-Term Capital Asset (STCA)	Long-Term Capital Asset (LTCA)
Holding Period	Held for a period not more than the specified limit.	Held for a period more than the specified limit.
Specified Limit	Varies by asset (e.g., 12 months

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TallyPrime Ledger Management and Bank Reconciliation

Posted by admin on Mar 3, 2026 in Financial and Accounting Management | 0 comments

This document explains how to create, alter, and display a single ledger, as well as the steps to create multiple ledgers.

Understanding Ledgers in TallyPrime

A Ledger is the actual accounting head or account name (e.g., Cash, Sales, Rent Expense, Customer A/C) that records and summarizes transactions. Ledgers are the most fundamental master in TallyPrime, as all vouchers and financial statements are built upon them.

Creating, Altering, and Displaying a Single Ledger

All ledger operations (Create, Alter,

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Final Accounts: Trading, Profit & Loss, Balance Sheet Accounting

Posted by admin on Feb 20, 2026 in Financial and Accounting Management | 0 comments

Final Accounts and Financial Statements

Final accounts are the financial statements prepared at the end of an accounting period to ascertain the financial performance (profit or loss) and the financial position (assets and liabilities) of a business. Final accounts typically consist of the Trading Account, the Profit & Loss Account, and the Balance Sheet.

Trading Account — Gross Profit or Loss

The Trading Account is prepared to ascertain the gross profit or gross loss resulting from buying and

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Accounting Entries, Financial Statements & Key Ratios

Posted by admin on Feb 19, 2026 in Financial and Accounting Management | 0 comments

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