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Accounts Payable Turnover Ratio
Ratio for Account Payable Turnover is as Follow:
Creditors/accounts payable turnover = Annual credit purchases /Average creditors
Example of Miller-Orr Model XYZ's management has put the minimum cash balance to be equivalent to Sh.10, 000. The standard deviation of daily cash flow is of Sh.2, 500 and the
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J inherited 30000 & decides to open a hair salon.make arrangements 1/4/1016 commits 10000 to the business Opens an a/c under j hair salon What will be the amount under capital in
Earning method - Bases of Valuation The business is valued according to the net stream of income it is expected to create over its lifetime. Determination of maintaina
What are the significant points of Fiscal Policy? Significant points of Fiscal Policy: a. Meaning of fiscal policy and why this is an significant tool into managing economic
Characteristics of sole proprietorship The main characteristics of sole proprietorships are as follows: 1) Ownership- The ownership of the business unit is by one person.
Existence of Quantity Discounts Recurrently, the firm is capable to take benefits of quantity discounts. Since these discounts affect the price per unit, they influence also
risk structure of interest rates 1. Default risk 2. Liquidity 3. Income tax consideration 4. Expectations theory
Revenue Reserves - Retained Earnings These are undistributed earnings. Those reserves are retained for the given reasons like: A. To create up for the fall in profits so a
Creditors Trade - Measuring Business Performance Creditors Trade These are interested in the company's capability to meet their short-term obligations as and whenever the
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