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This is difficult to perceive cash maintained in the vault as an investment. Fairly, you would be thinking that if we invest cash, then how can cash itself be an investment? However, you will realize that a specific minimum amount of cash is essential for any business. Take an easy case: if you are a retailer, will you send away a customer who does not have accurate change? Though, you can entertain him only if you keel change. It is your investment in cash; likewise, you will have to pay your employees and suppliers at a particular time. So as to do that you needs cash. Thus investment in cash is that amount that is required to be maintained on hand to meet daily requirements of cash. This amount is determined after taking in account the regularity and amounts of cash of inflows, the frequency and amount of outflows, as also the uncertainties related to these. Clearly, as your business grows the requirement for cash will also grow.
Calculate the equal monthly payments and the cost of financing on a 25-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% pe
A local delivery company has purchased a delivery truck for $15,000. The truck will be depreciated under MACRS as a five year property. The trucks market value (salvage value)
The following information is provided to you concerning Lydia Ltd as at 30 June 2012. Assume a company tax rate of 30%. (i) The balance of rent received in advance in the balan
sums with solution of marginal costing
are exploration costs of a mining company an asset or an expense
Period Costs Some terms are difficult to define. In one school of thought, period costs are the any costs that are not product costs. But, such a description is a stretch, beca
Accounting Treatment of Spoilage Costs 1) Normal Spoilage Costs: These costs are assigned to the good output utilizing two approaches as: (i) Omission Approach: Under th
Q. Show the Profit volume charts? A variation of a break-even chart, representing graphically the relationship between profit &losses at different levels of sales volume achiev
Day Corporation purchased a patent on January 1, 2012 for $360,000. The patent had a useful life of 10 years at that date. In January of 2013, Day successfully defends the patent
how do you find the plant wide overhead rate?
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