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Q. Show the Current Liabilities Method?
Forecasting of Current Assets as well as Current Liabilities Method: - As-per to this method an estimate is made of forthcoming period's current assets as well as current liabilities on the basis of factors like credit policy, past experience, stock policy and payment policy of the previous years. First of all such approximation is made for each current asset on the basis of each month and then monthly requirements are converted into yearly requirement of current assets. The approximated amount of current liabilities is deducted from this amount in order to estimate the requirement of working capital. A confident percentage for contingencies may also be added to this amount.
Source documents of an accounting system: Source documents are those documents that identify the particular transaction that is being recorded. They act as an internal control
Which formula would you use to solve for the payment needed for a car loan if you know the interest rate, length of the loan, and the borrowed amount? Describe. To solve for k
What are some instances of restrictive covenants that might be fixed in a bond's indenture? An indenture might involve limitations on future borrowings, restrictions on dividen
Introduction to financial management: Meaning and defecation of the financial management Finance function Scope and content of financial function Functions and
a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market. b) Up to 2 marks for correct definition: Market sha
Random Number Generation Since we have said that competitors' average price, quantity sold and cost behave in a random fashion but follow a normal distribution, if we want to d
What is the effect of stock (not cash) dividends and stock splits on the market price of common stock? Why do corporations declare stock splits and stock dividends? Stock splits
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You have just had your 30 th birthday. You have two children. One will go to college 12 years from now and require four yearly payments for college expenses of RM11,000, RM12,000
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