User talk:Sreekanthpulappatta

Management FAD
It is the managerial interest/practice followed for a period of time which exagerated zeal or craze.

ACCOUNTING LEVERAGES
It measures the relationship between two variables.In the financial analysis,this represents the influence of one variable over some other financial variable.

Leverage may be of three types-

1)Operating Leverage- It measures the relationship between Contribution and EBIT (Earnings Before Interest & Tax).A high degree of Operating Leverage means that the components of Fixed Cost is too high in the overall cost structure.

2)Financial Leverage- It shows the relationship between EBIT and EBT (Earnings before Tax).A high degree of Financial Leverage indicates the high use of the Fixed income bearing securities in the capital structure of the company/firm.

3)Combined Leverage- It helps to understand the impact of Contribution over EBT.

These leverages help to understand the impact of changes in different components.

Ageing Schedule
In Finance,the Ageing Schedule shows all the debtors of a company/firm and the debts which are outstanding.This helps to decide how to collect the bills and to discipline customers.


 * It is a very useful tool in the debt collection management.


 * Helps to reduce the payment period of the debts.