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Provisions against non performing loans and investments / Pre-provision income = Provision Expense Ratio
Salik Ansari
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∙ 11y ago
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What is the formula for times interest earned ratio?
Times Interest Earned = Operating Income/ Interest Expense.
What is Provision for expenses?
I the old days a provision for expenses was an expense accrual that was not posted to creditors but to a liablity provision line. This is a reminiscence of tax accounting. I the old days a provision for expenses was an expense accrual that was not posted tno creditors but to a liablity provision line. This is a reminiscence of tax accounting.
What is the formula for calculating interest coverage ratio?
operating income vefore interest and income taxes / annual interest expense
What is the formula of burden coverage?
Burden Coverage Ratio = EBIT/Interest Expense+[Principal Payment*(1-Tax Rate)
How do you calculate general and management ratios and what formula do I use?
Total general and management expenses General and management/Expense ratio = Total expenses
How calculate expense-to-sales ratio?
sales to expense ratio should be under 10% of your net sales, on a monthly basis
What is doubtful debt provision?
An item on the balance sheet that falls under liabilities. A provision is "raised" when the company has an expense for which it has not yet received an invoice and therefore does not know the amount. The provision is an estimate, which is charged against profits because the expense was incurred in the accounting period, which is being reported
What is provision for doubtful debt?
An item on the balance sheet that falls under liabilities. A provision is "raised" when the company has an expense for which it has not yet received an invoice and therefore does not know the amount. The provision is an estimate, which is charged against profits because the expense was incurred in the accounting period, which is being reported
Can Provision for partially paid liability be made?
Yes we should made the provision for partially paid. But the expense will be booked for the total liablity.
What is a spread ratio?
Spread Ratio: Interest Earned / Interest Expense
What is spread ratio?
Spread Ratio: Interest Earned / Interest Expense
What is the difference between provision and accrual?
Accrual is income earned but not received or expenses incurred but not spent. Provision is making provision from the profit for a specified or known expense which is to be met in unknown future.
