(A) Answer the following questions in one' sentence each :
(1) What is bad debts?
(2) What is surplus ?
(3) What are Noting Charges?
(4) What is Gain Ratio?
(5) What do you mean by Analysis of Financial Statements ?
Answers
Answer:
Here's your answer... I've referred Google a bit for more accuracy.
Explanation:
1)Bad debts expense is related to a company's current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense.
2)a surplus refers to the amount of retained earnings recorded on an entity's balance sheet; a surplus is considered to be good, since it implies that there are excess resources available that can be used in the future.
3)The Noting charges refers to the charges on the bills of exchange that was dishonor. Noting refers to the recording of the event in which a bill of exchange is dishonor by the noting public and it is utilized as an evidence of dishonor.
4)Gain ratio is calculated at the time of retirement or death of a partner. It is the ratio in which the remaining partners acquire the outgoing partner's share of profit. When the partner retires, the profit sharing ratio of the continuing partners gets changed.
5)The term 'financial analysis', also known as analysis and interpretation of financial statements', refers to the process of determining financial strengths and weaknesses of the firm by establishing strategic relationship between the items of the balance sheet, profit and loss account and other operative data.