Advantages of Asset Allocation

Asset allocation is an investment strategy which is adopted by majority of mutual funds and investors across the world, as an individual one must understand what it actually means. It refers to that strategy under which the money is not invested in single asset rather it is invested across spectrum of assets. In simple words [...]

0 comments

Inventory Ratio Interpretation

Inventory turnover ratio is the term used in the context of accounting ratios where it is used to calculate the period or number of times the products of company is sold and replaced during the year. Formula of inventory ratio is Cost of goods sold/Average stock (opening stock +closing stock/2), now let’s look at how [...]

0 comments

Advantages and Disadvantages of Conglomerate Merger

Conglomerate merger involves merger between two companies that are completely unrelated to one another in terms of products they sell. For example an information technology company merging or taking over an FMCG company is a type of conglomerate merger. Given below are some of the advantages and disadvantages of conglomerate merger Advantages of Conglomerate Merger [...]

0 comments

Journal Entry for Drawings

Drawings in case of business refer to the withdrawal of cash or goods by the owner of business for his or her personal use and therefore it needs to be accounted. Drawings are of two types one is when owner withdraws cash from the business and another type of drawing is when owner withdraws goods [...]

0 comments

Advantages and Disadvantages of Outsourcing

Outsourcing refers to that practice using which a company reduces its operational cost by transferring the company’s repetitive and less important work to outside agencies or outsiders. It can be better understood with the help of an example, suppose company receives a work order of manufacturing 100 units and in - house production cost is [...]

0 comments