Through various judgements, it was held by the Supreme Court that people cannot speak unless the they know. Hence, the Right to Information (RTI) is a fundamental right, embedded in Article 19(1) of the Indian Constitution which specifies that every citizen has freedom of speech and expression. RTI Background Timeline In 1994, Mazdoor Kisan Shakti Sanghatan (MKSS) […]
Financial statements are mainly prepared for decision making purposes. But the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis of financial statements is required. This process of critical evaluation of the financial information contained in the financial statements in order to understand and
Ratio Analysis describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm. Ratios provide clues to the financial position of a concern. It enables to assess the profitability, solvency and efficiency of an enterprise. Types of Ratios: There is a two way classification of ratios:
Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. According to Bierman and Drebin:” Accounting may be defined as identifying, measuring, recording and communicating of financial information.” Accounting can also be defined as the process of identifying, measuring, recording and communicating the required information relating to the economic events of an
The system of accounting and auditing of slate revenue and expenditure is believed to have existed in India under Maurya and Hindu Kings. Kautilya in his Arthashastra had given details regarding accounting and auditing of state finances. According to him, “all undertakings depend on finance. Hence, foremost attention shall be paid to the treasury.” He
Auditing: Meaning, Objectives, Errors and Frauds Read More »
