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Matching or Accrual
The accrual concept makes a distinction among the receipt of cash and the right to receive it, and the payment of cash and legal obligation to pay it. In fact business operations, the obligation to pay and the actual movement of cash might not coincide.
The accrual concept needs recognition of revenue and expenses on a comparable basis that is revenue and expense are allocated to a particular accounting period on a consistent basis.
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Meaning merits nd demerits of modern approch of financial management
It is also important to compare the returns from the equity stock and the bond to determine the profitability of both investments. We have seen above that the div
Explain the significance of the term additional funds needed . When the pro forma balance sheet is finished, total liabilities and total assets and equity will rarely match.
5 Define risk. Examine the need for assessing the risks in a project.
AThe project is expected to have an initial outlay of $200million and generate cash inflows of $64million for the next 12 yearssk question #Minimum 100 words accepted#
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Question 1: (a) Explain fully the following financial accounting techniques: i. Cash accounting ii. Accrual accounting iii. Fund accounting iv. B
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