net profit ratio definition
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net profit ratio definition

The accounting income follows the historical cost principle and the matching principle, which is conducive to the objective reflection of the business management responsibility of the enterprise management authorities. But, due to the historical cost principle inherent defects, especially according to the present value of revenue and expenses by historical cost line, makes the calculation of accounting earnings lack of inner logical unity, and the matching principle is difficult to carry out, so that the book value of assets can not reflect its real value, cost cannot be fully compensated. And the economic benefit is measured in the current value, which reflects the actual value of the asset, which is beneficial to the full compensation of the cost. Financial staff are used to dividing the investment payback period into long-term, intermediate and short-term periods. The term usually refers to more than five years, short term generally refers to a period of less than one year, and the middle term is somewhere in between. Managers also use long, medium and short term to describe the plan. Long-term plan describes the organization in a quite long period (usually more than 5 years) and the development direction of policy, regulation on the group's various departments over a longer period of time in some activities should reach the goal and requirements, mapped the organization long-term development blueprint. Short-term plans specifically provides for all departments of an organization in the current stage, to the future the shorter period especially in the recent period of time, which should be engaged in activities, engaged in such activities should meet the requirement, and thus provides a basis for the ACTS of all members of the organization. Central bankers must learn to speak in colloquial language The report also supports the government's plan to cut its annual budget deficit this year. Larger suppliers can borrow cheaply from the government's regular contributions, which means they have little incentive to raise savings rates to attract customers' deposits and then lend.