1) What would be the gross profit margin and net profit margin? 2) what is the relevance of creditor days or how does it apply?

Q: will bills  payable given to creditors affect the current ratio?

A: Current ratio is the ratio of Current Assets to Current Liabilities.  Current ratio = Current…

Q: What is the purpose of income crediting?

A: Sales revenue: Sales revenue is the amount earned by the company by selling the goods or providing…

Q: What is accrual accounting?

A: Accrual basis of accounting is an accounting method based on which accrual transaction are recorded…

Q: How do you show profit and loss on a balance sheet?

A: Balance Sheet is the part of financial statement which shows the financial position of the company…

Q: What is the Effect of Loan-to-Value Ratio on Loan Cost?

A: LTV ratio tells about the maximum loan approved in terms of the value of the collateral given.

Q: How does credit scoring operate, and how are we as consumers and users of credit effected by it?

A: Credit Scoring - Credit scores are calculated with the help of the details of the old payment…

Q: What does the gross profit percentage measure, and how is it calculated?

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: What is the difference between your credit report and your credit score? What is a good credit…

A: Introduction to Credit report A credit report is prepared by a credit bureau and is a breakdown of a…

Q: What are the different sources of financial ratio information?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: What are lines of credit? From the viewpoint of a short-term creditor, why do lines of credit…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: While reporting revenue, how a company should consider barter arrangement and discount?

A: Revenue Reporting: The process of accounting for revenue for a product you offer to a client is…

Q: How does the rule of debit and credit relative to accounting equation?

A: Accounting equation:   It is a mathematical expression that presented all assets of the firm are…

Q: Define each of the following terms:k. Accruals; trade credit

A: There are two types of systems in accounting, one is a cash system of accounting and the other is…

Q: do the terms dehit and credit signify increase or decrease or can they signify either ? Explain

A: The effect of debit or credit on an account depends upon the nature of that account. It depends…

Q: What is meant by net income and net loss?

A: When the company has more amount of revenue it would have positive income whereas when company has…

Q: difference between debt and quity

A: A company’s capital consists of two forms, one is equity and the other is debt. When a company is…

Q: How do you treat net loss on a balance sheet?

A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…

Q: lending

A: The term net lending is defined as an economic measure which measures as to whether the government…

Q: Explain Loan Closing Costs and Effective Borrowing Costs?

A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…

Q: What are the essential differences among demand deposits, savings deposits, and time deposits?

A: Deposits refers to the sum of money that are deposited with banks or any financial institution.…

Q: How is the times-interest-earned ratio calculated, and what does it evaluate?

A:

Q: What is the difference between gross income and net income?

A: Gross income refers to the income or profit remaining after all the production related expenses are…

Q: Hi why is the net income on the credit side and not debit?

A: Net Income - Net Income is the result of the revenue over expense incurred by the company. It will…

Q: what are the principal types of credit scoring models.

A: Credit score is referred as a number range from 300 to 850 which determines the creditworthiness of…

Q: What is the difference between income and savings contribution categories on the income statement.?

A: As the global community becomes increasingly interconnected and informed, the impact of business…

Q: What are debt issue costs and how should they be reported?

A: