Accounting Problem Solving

Accounting Problem Solving-67
External audit is to verify the authenticity of the report made by the internal team by an external auditor.Market price of a product varies with different factors and profit is directly proportionate with it and inversely proportionate with the cost of the product.Therefore, the liquidity position is not satisfactory.2.

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A business entity cannot enhance the market price to earn maximum profit but can curtail production cost to maximize the profit.

This branch of accounts deals all factors and information related to production cost and the way to minimize it.

So as per the area of its activities the subject is segmented as It is an important managerial activities, includes analysis of financial transactions, reports and information for taking the best decision for the business.

Learn more details with our Accounting Homework Problem Solver so that you will be an expert manager in future.

for vivid information you can get in touch with our Accounting assignment Problem Solver at university homework help.

But here we are trying to discuss about the segmentation of the subject topic in a nutshell only for our readers.

The higher the Turnover Ratio and the shorter the average collection period, the better the trade credit management and the better the liquidity of debtors.

That is, high Turnover Ratio and short collection period imply prompt payment on the part of debtors.

for the year ended 31st December: Problem 4: From the following Balance Sheet and additional information, you are required to calculate: (i) Return on Total Resources(ii) Return on Capital Employed(iii) Return on Shareholders’ Fund Problem 5: A company has capital of Rs.

10, 00,000; its turnover is 3 times the capital and the margin on sales is 6%. Problem 6: Ram & Company supplies you the following information regarding the year ended 31st December: Significance: A high Inventory turnover ratio is better than a low ratio.

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