Current ratio gives the proportion of current assets to current liabilities of a business concern. It is computed by dividing current assets by current liabilities. It is calculated as follows:
Current ratio = \(\frac{Current assets}{Current liabilities}\).

Following are the steps involved in designing accounting reports:
(i) Define the objective of generating report
(ii) Specify the structure of the report
(iii) Creating database queries to interact with the database to retrieve, modify, add or delete data from the records

According to Lord Justice Lindley, A company is an association of many persons who contribute money or money's worth to - a common stock and employ it in some trade or business and who share the profit and loss arising there from. The common stock so contributed is denoted in money and is the capital of the company. The persons who contributed in it or form it, or to whom it belongs, are members. The proportion of capital to which each member is entitled is his share.

Funds flow analysis is concerned with preparation of funds flow statement which shows the inflow and outflow of funds in a given period of time. Funds flow analysis is useful in judging the credit worthiness, financial planning and preparation of budgets.

No, due to legal restrictions, a company cannot maintain its accounts under single entry system.

A person may join as a new partner in an existing partnership firm. This is called admission of a partner.

A partner may retire from the firm:
(i) With the consent of all the partners.
(ii) In accordance with an express agreement by the partners.

(a) Under fixed capital method, salary payable to a partner is recorded in the current account
(b) Under fixed capital method, drawings made by a partner is recorded in the current account.

Number of years purchase means for how many specific years the business will earn same amount of profits because of its past efforts.

Following are the steps involved in the preparation of receipts and payments accounts:
(i) Record the opening balance of cash in hand and favourable bank balance on the debit side of receipts and payments account. If there is a bank overdraft, it must be recorded on the credit side
(ii) Actual cash receipts during the year are recorded on the debit side and actual cash payments during the year are recorded on the credit side.
(iii) While recording cash-receipts and payments, no distinction needs to be made between revenue and capital items.
(iv) If the total of the debit side is more than the credit side, the balancing figure will appear on the credit side. It represents the closing balance of cash or bank.
(v) If the total of the credit side is more than the debit side, the balancing figure will appear on the debit side. It represents bank overdraft.