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.
Application of Information technology in respect of management information system
Question 1: A company's budgeted production of Product Zebra for the month ending 30 November 2004 was 10,000 units. The fixed overheads were budgeted at Rs3,200,000. The st
monetaryor non monetary which will arise as aresult of implemenntinng the project
What is the Responsibility of operating budget when the operating budget of a firm is constructed in terms of responsibility areas it is called the responsibility budget shows
Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip
solution to problem 2-23,T-Accounts;applied overhead of Kleinman Company is a manufacturing firm and employess a job-order costing system.
Question : (a) A company manufactures and sells two products A and B. Presently, it sells 600 units of A and 400 units of B at a price of £24 and £19 respectively. The unit
What are the Principles of management accounting? 1. The procedures and methods to be followed for keeping and analyzing financial statements should have consistency. It enable
The significant objectives of short-term cash forecast are as given: find out operating cash requirement anticipating short term financing Organization investment of
Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,200 of this balance is dire
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