Importance and limitation of Profitability Ratios (All You Need to Know)

Overview: Profitability ratios are a group of quantitative values that measure a company’s profitability against its revenue, cost of sales, equity, and balance sheet assets. It is a metric that measures a company’s ability to generate income from its operations over a specific period of time. A profitability ratio is a category falling under financial

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6 Tips Help You To Manage Your Company’s Fixed Assets Effectively

Overview: Fixed assets management is an effective process of tracking and maintaining the organization’s physical assets to prevent losses. It enables the organization to track equipment, vehicles, machinery, buildings, assess their condition, and keep them in good working order. The process of managing the assets gets complicated, along with the size of the organization. Small

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Proper Classification of Fixed Assets in Financial Statements

How are assets classified in financial statements? Assets refer to the resources that own by an entity such as cash, inventories, chairs, tables, cars, buildings, machinery, land, etc. These assets could be used to generate future economic flow to the entity. Entity reports assets in their financial statements specified in the balance sheet by classified

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Procedure for Fixed Assets Disposal And How to Account For It

Overview: Fixed assets are those long-term assets that can benefit the enterprise for more than 12 months and are above the particular threshold as defined by the enterprise as guidelines made in compliance with laws and regulations and align with the applicable accounting standards and frameworks. There are certain procurement procedures when the fixed assets

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