PERPETUITY Perpetuity refers to the stream of cash flow payments which continues indefinitely. It can also be understood as an annuity that has no end. In valuation analysis, perpetuities are…

INTRODUCTION TO FINANCIAL RATIOS (Contd ... ) This section talks about profitability ratios and their business interpretation in detail. We will be using following income statement & balance sheet for…

INTRODUCTION TO FINANCIAL RATIOS (Contd ...) This section talks about the Liquidity and Solvency Ratios and their business interpretation in detail. We will be using following income statement & balance…

INTRODUCTION TO FINANCIAL RATIOS (Contd ...) This section talks about Activity & Valuation ratios and their business interpretation in detail. We will be using following income statement & balance sheet…

INTRODUCTION The section introduces you to the fundamentals of accounting principles, concepts & terminologies. The objective here is to strengthen your concepts and understanding on topics like Revenues, Expenses, Assets,…

INCOME STATEMENT Income statement is used to show how profitable a company has been during a particular time period. This period can vary from a week, a month, a quarter…

BALANCE SHEET Balance sheet is a financial statement that captures an organization’s assets, liabilities and equity information at a specific point in time. As an example, a balance sheet dated…

STATEMENT OF CASHFLOW This is the third financial statement that John needs to understand in order to track his business efficiently. Cash flow statement will help John understand, how cash…

DOUBLE ENTRY SYSTEM OF ACCOUNTING Double entry system of accounting ensures that every business transaction must be recorded in a minimum of two accounts. Though recording an entry in less…

DEBITS & CREDITS Once you have identified the two or more accounts involved in the business transaction, you must debit at least one and credit at least one account for…