Archive for 'ACCOUNTING-BOOKS' Category
WHAT IS LIFO AND FIFO
LIFO method is based on the assumption that last item of material purchased is the first to be issued. While FIFO is based on the material first received are the first to issue.
In LIFO price of the last consignment is used for pricing material issues until it is exhausted. In FIFO units issued are priced [...]
USES OF FUNDS
The transactions that decrease the working capital are application or uses of funds.
Following are the main uses of funds
1) Loss from operations – Just as profit from operations is treated as a source of funds, in the same way, loss from operations should be treated as an application if funds. Funds lost in operations result [...]
FUND FLOW STATEMENT
The balance sheet of a firm discloses the position of assets, liabilities and capital at the end of particular year. But it doesn’t disclose the causes of changes in these items between the end of previous year and the end of current year. Therefore, an additional statement called ‘ funds flow statement’ is prepared to [...]