Just u create Outstanding expenses ledger under current 
liabilities.


This outstanding expenses will show on current liabillities 
in Balance Sheet

it is in the general, marine,life insurance subject. it is 
total of claims paid by general insurance plus losss 
adjustments divided by premium earned.also called loss ratio

The ratio of the cost of claims to the corresponding
premiums, either gross or net of reinsurance. The claim
ratio could, for example, be:

    * the ratio of the incurred claims cost to the written
premium for a given underwriting year 

    * the ratio of the estimated ultimate claims cost to the
estimated ultimate premium for a given underwriting year 

    * the ratio of the incurred claims cost to the earned
premium for a given accounting year or year of exposure; or 

    * the ratio of the estimated ultimate claims cost to the
earned premium for a given accounting year or year of exposure 

In the latter two examples the numerator could also include
the estimated change in the cost of claims that occurred in
earlier years. Similarly, the denominator could include
changes in earned premium in respect of earlier years.

Claim ratios may relate to periods other than a year.

operating exps
investing exps
financial exps

The most commonly used format for the cash flow statement 
is broken down into three sections:  cash flows from 
operating activities, cash flows from investing activities, 
and cash flows from financing activities.

it shold be either current assets ration or else liquide 
assests ratio

1:1

Current Assets Ratio
Logic: Current Assets/current liabilites.

Quick Ratio = Quick assets/ Current liabilities.

Absolute quick Ratio= Cash and Bank+Marketable 
securities/current liabilities.

All liquidity ratios are the examples except cash interval 
measure.

2;1

Current Ratio
Quick/Acid-test Ratio

Cash Flow Statement : Statement showing changes in inflow &
outflow of cash during the period.

Methods of cash flow:
1.Direct Method : presenting information in Statement of
A. operating Activities
B. Investment Activities
C.Financial Activities

2.Indirect Method :uses net income as base & make
adjustments to that income(cash & non-cash)transactions.

Funds Flow Statement :Statement showing the source &
application of funds during the period.

Major Difference:

The Cash Flow S tatement allows investors to understand how
a company's operations are running, where its money is
coming from, and how it is being spent.

Fund Flow Statement is showing the fund for the future
activites of the Company.

In the cash flow statement increase in current liabilities 
or decrease in current assets will increase in cash and 
vice versa whereas in the fund flow statement increase in 
current liabilities or decrease in current assets will mean 
decrease in working capital .

Shares in a public limited company can be bought and sold 
on the Stock Exchange. Shares in a private limited company 
can only be bought and sold privately.

RELIANCE INDUSTRY
ONGC
ZANDU FARMA

Primary market is where new share are distributed to the 
inversters and Secondary Market is where exiting 
issues/shares trade.

debit card - your savings a/c limit can use with debit card
Credit card - they will give certain limit for credit