Month: January 2022

Communication is an act of any natural or artificial means of conveying information or giving instruction. It’s the process of passing information and understanding from one person to the other. According to Newman and summer Communication is an exchange of Read More …

If there is sufficient information relating to cash payments and receipts, then a simple cashbook for both cash in hand and cash at bank can be prepared in confirmation of deposits and payments made from the bank statement. The information Read More …

There are 3 important ratios to be looked at: Gross profit margin Mark up Stock turnover If a firm has a uniform Gross Profit for all the items sold then any information available on sales or purchases can be used Read More …

Where the available records are so deficient (i.e. it is impossible to compile a reasonable complete cash summary, the only method of estimating the profits or loss for the period, is to prepare statement of affairs showing the net worth Read More …

INTRODUCTION An incomplete record situation is whereby, the accounting system falls short of the double entry. This may be due to: Lack of records at all; or Insufficient records that will facilitate the preparation of final accounts. Reasons for incomplete Read More …

Cash flow statements have many uses other than the legal need for some companies to prepare them. A few cases where a business might find them useful is answering such questions as below Small businessman may want to know why Read More …