Accounting Category: Financial ratios

Accounting Articles

Fundamental analysis is used to estimate a true value of an asset such as a company or a stock. Financial statements prepared by accountants and tested by auditors are used extensively in fundamental analysis.

Key performance indicators are usually associated with organizational departments or units with highly visible outputs (sales, customer services, production, etc.). However, accounting and finance departments also have stakeholders to whom they provide services. It makes sense then to have KPIs for accounting and finance departments to measure and increase their performance.

Balanced scorecards have a long history in helping organizations become better at what they do. We have a brief review of balanced scorecards in this article.

Key performance indicators are important for the successful management of an organization.

This article provides some examples of how trend analysis can be used in accounting and auditing.

Trend analysis may be a helpful tool to analyze various financial data. In this article, we will review trend analysis and how it can be used in accounting and management.

Earnings per share (EPS) is a closely-watched business metric that tells analysts and investors how much a corporation is making on a per-share basis. In this article, we’ll describe basic EPS in detail, and then briefly describe the diluted EPS calculation.

In part 1 of this series, we learned how to calculate the cost of different forms of financing -- debt, preferred equity, and common equity. In this article, we’ll cover some ways that information can be used to make sound business decisions.

In this two-part article series, we will discuss how to calculate a firm’s cost of capital. This is an important measurement with several business applications. We’ll go over the basic concepts below - the second part will focus on the practical applications.

Financial management is a risky business - predictions of future performance are prone to the effects of an ever-changing economic environment. Discounting predicted cash flows is one method a financial manager can use to account for the risks associated with forecasting performance.

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Accounting categories represent a collection of accounting guides and answers related to one accounting area.