Financial Ratios
Metrics derived from financial statements used to evaluate a company’s performance, health, and efficiency. Common ratios include current ratio, return on equity, and debt-to-equity. They are essential for comparing performance over time or against industry benchmarks and for making informed business decisions.
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Financial Leverage
The use of borrowed funds to increase the potential return on investment. While leverage can amplify profits, it also magnifies…
Full Disclosure Principle
A key accounting concept that requires all significant information affecting financial statements to be clearly disclosed. This includes pendings lawsuits,…
Forensic Accounting
A specialized field that combines accounting, auditing, and investigative skills to detect fraud, embezzlement, or financial misconduct. Forensic accountants analyse…
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