Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The requirement for working capital fluctuates according the level of inventory, production, debtors and creditors etc. The working capital needs are not uniform during the year because of the seasonality of the product being manufactured and business cycles. Separately from this, the working capital requirement would also base upon the demand of the product and demand-supply condition of the raw material. Relationship of all these variables would find out the requirement for working capital at any time.
Under situations where the working capital requirement is decreased, it results in excess cash. Such excess cash may be required while the demand picks up. The firms might hold this surplus cash as buffer to meet unpredictable financial requirements. As this excess cash doesn't earn any return the firms may invest such cash balance in marketable securities and another investment avenue.
Because this excess cash balance is obtainable only for a short period of time, this should be invested in liquid securities and highly safe. The three fundamental features: safety, marketability and maturity must be kept in mind whereas making investment decisions regarding temporary excess cash. Now safety implies that the default risk that is: payment of interest and principal amount on maturity must be minimized. As the prices of long-term securities are more sensitive to interest rate modifications as compared to short-term securities the firms must invest in securities of short-term maturity. Marketability termed as convenience, transaction and speed cost along with that security or an investment can be converted in cash.
Your company is considering investing in its own transport fleet. The presentposition is that carriage is contracted to an outside organization. The life of thetransport fleet woul
Disadvantages of zero base budgeting 1) It is not suitable for all the activities in an organization 2) It has limited application in a profit making organization. In this c
Describe the Limitations of management accounting: 1. Based on accounting information: the correctness and effectiveness of managerial decisions will depend upon the quality
Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is it r
1. In common, accounting period is the time period reflected by a series of financial statements. 2. In terms of taxation, it is twelve-month period a taxpayer uses to know
critically analyze mr vincent reasoning
contribution margin
Definition of accounting Accounting is the procedure of recognizing measuring and communicating economic information to allow informed judgments and decisions by the user’s inf
The Braggs & Struttin'' Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of
Question: (a) (I) The following equations relate to the market conditions for pullovers at a given point of time: Demand Function: Q d = 1200 - P Supply Function: Q s
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd