Types of Business Organizations
A business owned by one person called the proprietor
Sole Trader
First section of the Cash Flow Statement
Operating Activities
Which ratios will determine a firm's ability to pay off debts?
Liquidity
Owned by investors called shareholders. Infinite number of shareholders
Corporations/ Companies
Acquisition and disposal of long term assets
Investing Activities
Name any Activity Ratio
Inventory Turnover
Average Payable
Average Receivable
Motive for operating is to help people
Non Profit Organisations
Treatment for Loss on Sale of non current assets
Add: cash flows operating activities
ROCE is what type of ratio?
Profitability
Motive for operating: Improving the financial status and welfare of members
Cooperatives
Treatment for: Dividends Paid
Financing Activities
Debt to equity ratio is what type of ratio?
Solvency Ratio