Untangle Your Accounting Confusions
If you are into commerce stream but you are afraid of accountancy practicals, than you are into
dire straits. Neither you can escape nor can you avoid accounting practicals. The earlier you
realise it, the better it is for you.
Among all other commerce papers, since Accountancy is one of the main papers in stream commerce
you should not ignore the theory part rather should devote equal time and attention in studying
the theories. Understanding the concept behind a
chapter helps solving accounting practical problems, topics and chapters.
At Commercepapers.com we are very well aware of the problems that students normally face. No
matter how hard you try and prepare all other subjects along with accountancy practicals, the
dread of the impending exam always plays at the back of
your mind.You cannot ignore this
feeling rather, at times, it might give you goose bumps. So how can you learn and cope with
accounting practical problems? It’s simple; you can seek the help of
commercepapers.com wherein you can clarify your classroom confusions, or simply become more
familiar with fundamental accounting topics and chapters. All explanations are described in very
simple terms and are easily understandable. It is a
perfect companion for anyone looking to increase their accounting skills and is also useful for
individuals aspiring to pass their accounting courses and make a base for professional
accounting career.
We aspire to help you Untangle your accounting confusions and help you accelerate or push
your capabilities to solve accounting problems, and understand accounting topics and chapters.
Study more own your own, find potential solution to accounting problem and ask yourself - Did the
solution work?
Debt-To-Equity Ratio:
Debt Equity Ratio is the ratio that indicates the pattern of company's finance between debt-
capital and equity capital. Here "Debt Capital" refers to that portion of company's assets
that are being financed through "Loan" or 'Debt'
that has some intrinsic interest-bearing financial obligations. For example debentures,
loans, redeemable preference shares, bank overdrafts, etc
Consolidation:
In business, the term "Consolidation" refers to the merger and acquisition or combining of
assets, liabilities and other financial items of two or more entities into one as a single
economic entity.
Budgeting And Financial Forecasting:
Budgeting and financial forecasting are like two sides of a coin. While budgeting helps to
prepare the estimates for future, financial forecasting are financial planning techniques
that help business personnel in their decision-making
process. Budgeting helps in evaluation of revenues that a business wants to realize in the
near future period, whereas financial forecasting is used to calculate approximately the
amount of revenues that will be achieved.
Capital Reserve And Revenue Reserve:
The accounting mechanism of "Capital Reserve" is used to conserve profits. The system of
"Capital Reserve" provides financial stability to the concern. Capital Reserve crop up
either from gain on sale of long-term assets or on settlement
of liabilities. Capital Reserve may also arise due to the sale of equity shares at a
premium. Further, due to legal obligations, some amount revenue profits may also be added to
capital reserve but Capital Reserve does not include any
free balance that might be used for the distribution of profits.
Inventory Turnover Ratio:
Inventory Turnover Ration refers to the average number of times in an accounting period that
a business sells and replenishes its inventory or stock of goods. The time taken or the
period is divided by the inventory turnover formula to
calculate the days taken to sell the inventory on hand or "inventory turnover days."
Accounting Equations:
The accounting equation helps us to understand the relationship between financial statements.
Before understanding cost accounting, we need to understand the meaning of cost object. Cost
objects are those product lines, customers, departments
or any other thing the cost of which needs to estimated by management. It is a key concept
used in managing the costs of a business.
