The difference between total receipts and total payments referred to as?

2 ANSWERS

1. amomipais82
   

   Hi There,
   Accounting Equation
   
         Is a useful rule which helps when assembling the balance sheet figures. The rule which is always true is that:
   
   Assets - Liabilities =Capital
   Fixed Assets + Current Assets
   -Current Liabilities - Long term Liabilities = Capital + profit - drawings
   
         This means that when preparing a balance sheet there will always be two figures which are the same and we refer to this state as the the balance sheet balancing
   
   Accounting ratios
       Used to help make sense of the figures and include the following categories:
   
       * Profitability ratios , used to compare the profitability of one company with another or of one company over time.
       * Liquidity ratios, used to compare the liquidity of one company with another or of one company over time.
       * Investment ratios, used by potential investors when making investment decisions.
       * Efficiency ratios, used to compare company efficiency with others or with itself from one year to another.
   
         Accounting ratios are only useful when used to compare:
             o one company's results over a period of time.
             o one company's results with another company. It is best to compare with the best ,such as a world class company, or to compare with the industry standard for that type of business.
             o the company's results with those expected. It is useful to use budgets for this purpose.

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2. Guest4649
   

   define and explain recipts?

   
   

    

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