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Financial accounting has emerged in response to the need of managers to communicate to owners [principal] regarding whether the principal’s capital entrusted to them is preserved...
CAPITAL – This is a very broad term with its roots in economic theory that refers to money and other assets that are invested in a...
DIVIDEND PAYOUT RATIO – This ratio is computed by dividing total cash dividends for the year by the net income for the year. It’s simply the...
INVENTORY TURNOVER RATIO – This ratio equals the cost of inventories divided into the cost of goods sold expense for a period [usually one year]. The...
PROFIT – The general term profit is not precisely defined; it may refer to net gains over a period of time, or to cash inflows less...
The Chief Financial Officer (CFO) must communicate important and accurate financial information to senior-level executives, the board of directors, divisional managers, employees, and various third parties....