Mangalam Landmarks Interview Questions, Process, and Tips

Ratios are used to analyze the financial health of a company by comparing different financial metrics.

• Types of ratios include liquidity ratios, profitability ratios, efficiency ratios, and solvency ratios.

• Liquidity ratios measure a company's ability to meet short-term obligations (e.g. current ratio, quick ratio).

• Profitability ratios assess a company's ability to generate profit (e.g. return on equity, gross margin).

• Ef...read more

To pass a journal entry for advertising expenses, debit the advertising expense account and credit the cash or accounts payable account.

• Debit the advertising expense account to increase expenses

• Credit the cash or accounts payable account to decrease assets or liabilities

• Example: Debit Advertising Expense $500, Credit Cash $500