Question: Can you tell me what is Rule 72 and Rule 69? When can I use these Rules? Suggested Answer: (a) What are Rule 72 & Rule 69: Rule 72 is a rule-of-thumb method used to determine how many years it takes to double in investment money. For example, using the rule of 72, dividing … Read more
Below is an example to illustrate the major accounting business ratio for the interpretation of the financial statement of a company. A Comprehensive Illustration of Major Ratios Below major ratios have been computed to illustrate what we have learned from earlier articles on ratio analysis/interpretation of financial statement:- Balance Sheet Of … Read more
A limited company has an Articles Of Association and Memorandum of Association. What is the difference between these two documents? Suggested Answer: The differences are as follows: Articles Of Association is the document containing the rules which governs the INTERNAL organization of a limited company. This must be filed with the Registrar of Companies together … Read more
Question: For 2008, the company achieved a net margin of 12.5%. (a) What does net margin mean? (b) How useful is this net margin when used for interpreting the company’s financial statement. © Say the company achieved 10.5% net margin in 2007 and 9.5% in 2006 so is it good or bad? Suggested Answer: Earlier … Read more
Question:I was informed that when accountants performed cost apportionment to distribute the costs to a particular cost centre, they also encountered challenges or differ in opinion of using the basis to do so. (a) Why is it so and (b) Is there any standard basic guideline to do this cost apportionment? Suggested Answer: Earlier article … Read more