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After you have studied this section, you should be capable to:
Depending upon the user's purpose, the term 'funds' may be utilized differently. Literally, this implies a supply that can be drawn upon. This means it is used for mean cash, total working capital or current assets. We use this here in the sense of working capital meaning total current assets less current liabilities.
Funds flow is utilization is refer to changes in or movement of current liabilities and current assets. This movement is of vital significance in understanding and managing of the operations of a business.
We have seen in the section dealing along with balance sheet that every material transaction changes the position statement or Balance Sheet. It in other words implies a dynamic situation including continuous movement of resources in the business, inside the business and out of the business. The complication of these flows rises with the rising size and volume of business. Indirectly or directly, all these flow take place in business by the medium of funds.
Funds in the type of cash and cash equivalents, into the right quantity are essential for the smooth functioning of any business. The continuous movement of cash inside the business and out of the business could be understood through studying the cash flow statement.
#what is the formula for calculating payback period and what are its limitations ?
Presented below is a list of terms relating to cost behavior, followed by definitions of those terms: a. Rent on a factory building b. Engineering approach c. Fixed cost
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Controllable and Non Controllable Costs Controllable costs can be influenced on the level of authority at that they are being analyzed when non-controllable costs cannot.
Hi, i need the solution manual for cost accounting managerial emphasis 12 edition
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Under what conditions is a market-based transfer price optimal?
what is the implication of applying accounting principle wrongly
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