Examlex
What are the major categories of ratios used to analyze financial statements,and what do they measure?
Analysis of Receivables Method
An accounting method used to estimate the amount of receivables that will not be collected based on historical data and trends.
Direct Write-off Method
An accounting practice where uncollectible accounts receivable are written off to expense only when they are determined to be non-recoverable.
Adjustment
An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.
Percent of Sales Method
A financial forecasting tool used to estimate certain balance sheet and income statement accounts based on a projected sales figure.
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