Difference Between Cash Flow and Fund Flow: Comparison and Example
See the difference between cash flow and fund flow with a comparison table, transaction examples and a worked cash and working-capital reconciliation.
Category Financial Statement Analysis
Tools of Financial Statement Analysis: Methods and Worked Examples
Learn the tools of financial statement analysis with a worked case, clear formulas, Excel steps and checks for margins, cash flow and working capital.
Spotting Window Dressing: Top 5 Indicators
Window dressing is a short term strategy used by business’s , portfolio managers to show case good performance to their investors or shareholders. Types of Window Dressing So simply put, painting a rosy picture to your clients, shareholders or investors.…
The Broader Un-conventional Scope of Investment Analysis
Whenever, you think about growing your money then the first thing that comes to the mind is stocks. However, does the scope of investment analysis stop at just the analysis of the asset? Let me take you through the practical…
Difference between internal check and internal audit
Difference between internal check and internal audit So the major difference between internal check and internal audit is that internal check is a subset of the internal audit. Which also means that the flow of a good company with good…
Capital Maintenance- Financial & Physical Explained
Capital Maintenance- Meaning So, capital maintenance concept suggests that if your company has increased its net assets from the beginning of the year, then capital has been maintained. This means, that even if there are was any cash inflow or…
Capital Injection- What it is and Meaning with Examples
Capital Injection Meaning in a Nutshell So, business’s require money and when you externally pump in capital to fund a project, expansion to facilitate growth then that’s called as capital injection. Which can be done at any stage of the…
Difference between factoring and bill discounting
So, imagine you are running a business and you have sold your products or services on credit. And the payments are due to come in the coming few months. However, you need funds to manage your working capital expenses like…
Capitalisation of average profit method formula- Application and Examples
Often when you see the balance sheet of a company, you will notice a line item showing “Goodwill”. In this article we will discuss on how to calculate goodwill using Capitalisation of average profit formula. Profit is the heartbeat of…
5 Limitations of accounting & How to avoid it?
In this article we discuss the comprehensive coverage of the limitations of accounting. So, you start reading the annual reports of a company and tabulating the numbers. While you punch in those numbers and believe this is a great company?…
Proprietary Ratio Super Simplified Formula & Interpretation
The most significant assumption in the proprietary ratio is off-balance sheet financing. Now, you might wonder what off-balance sheet financing is.
Stock and Sales Statement: Format, Example & Excel Template
A stock and sales statement reports how inventory moves during a defined period. It normally shows opening stock, receipts, sales, returns, other movements and closing stock by product. For example, use it to reconcile quantities and investigate differences. Keep inventory…
