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Q. Define the Constructive Receipt?
Constructive Receipt - A taxpayer is considered to have received income even though monies are not in hand, it may have been set aside or otherwise made available. An illustration is interest on a bank account.
FACTORS AFFECTING WORKING CAPITAL NEEDS OF FIRMS A large no. of reasons influences the working capital requirements of firms. a number of them are as follows: 1. Nature of
Sensitivity Analysis A test of an organizations performance projections based on varying the key assumptions which is used for forecast performance.
Compare diversifiable and nondiversifiable risk. Which do you believe is more significant to financial managers in business firms? Actually Diversifiable risk can be dealt with b
Accountants should not reverse the adjustment of prepaid insurance to recognize insurance expense at the end of the accounting period because: Answer a. . doing so results in
Define the in- order-driven according to trade intermediation. In- order-driven markets: In order-driven markets, buyers and sellers trade unswervingly without any intermedi
What is the matching principle of working capital financing? What are the benefits of following this principle? The matching principle is while short-term financing is used fo
which type of approaching to each firm
Optimal Portfolio Selection: The next step involves selecting the optimal portfolio. The strategic asset allocation will have overriding importance in pension fund management.
Operating Leverage Operating leverage define the degree to which an organization cost of operation is fixed as opposed to variable. Therefore, it is a measure of how much a fir
What problems can take place into the capital budgeting analysis if project debt is evaluated in place of the borrowing capacity created by the project? If project debt is grea
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