Current asset turnover ratio – meaning and formula

reason why absolute assurance is impossible in auditing

The current assets turnover ratio ascertains the efficiency with which current assets are used in a business. This ratio is strongly associated with the efficient utilization of cash, receivables, and inventory. A higher value of this ratio indicates greater circulation of current assets while a low ratio indicates a stagnation of the flow of current assets. read more

Nine (9) limitation of accounting ratios.

Revision question on government grants IAS 20

Ratio is the quantitative relation between two amounts showing the number of times one value contain or is contained within the other. In auditing ratio are used when performing analytical procedures which is one method of collecting audit evidence. read more

6 limitations of using accounting ratios in appraising financial performance.

Six (6) limitations of using accounting ratios in appraising financial performance.

Accounting ratio are used to measure the efficiency and profitability of the company based on its financial reports. They provide a way of expressing relationship between one accounting data point to another, and are the basis of ratio analysis. read more