201 Outstanding
Income : Outstanding Income means income which has become due during the
accounting year but which has not so far been received by the firm.
202 Outstanding
Expenses : Outstanding Expenses refer to those expenses which have become due
during the accounting period for which the Final Accounts have been prepared
but have not yet been paid.
203 Closing
stock : The term closing stock means goods lying unsold with the businessman at
the end of the accounting year.
204 Methods of Depreciation
:
1.Unirorm charge methods :
a. Fixed installment method
b .Depletion method
c. Machine hour rate method.
2. Declining charge methods :
a. Diminishing balance method
b.Sum of years digits method
c. Double declining method
3. Other methods :
a. Group depreciation method
b. Inventory system of depreciation
c. Annuity method
d. Depreciation fund method
e. Insurance policy method.
205 Accrued Income : Accrued
Income means income which has been earned by the business during the accounting
year but which has not yet become due
and, therefore, has not been received.
206 Gross profit ratio : it
indicates the efficiency of the production/trading operations.
Formula : Gross profit X100
Net sales
207 Net profit ratio : it indicates net margin on sales
Formula : Net profit X
100
Net sales
208. Return on Share Holders Funds : it indicates measures earning power of equity capital.
Formula : profits
available for Equity shareholders X
100
Average Equity Shareholders Funds
209 Earning per Equity
share (EPS) : it shows the amount of
earnings attributable to each equity share.
Formula : profits
available for Equity shareholders
Number of Equity shares
210 Dividend Yield Ratio :
it shows the rate of return to shareholders in the form of dividends based in
the market price of the share
Formula : Dividend per share X 100
Market price per share
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