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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.
Considerations for the financiers of MBOs Support of MBO will rely on various factors: The reason for sale of business. Is it falling on hard times? Is group divesting to co
Q. Types of investment decisions? (1) Short-term investment decisions: - This kind of investment decisions related to the short-term assets. These decisions are as well called
A bond is said to be currently callable if the issue is not protected against early call provision. But most new bond issues, even if currently callable, us
1. Using ratio analysis, compare your fifth year to the current year and discuss. 2. Compute the expected stock price at the end of the fifth year. Assume your stockholders hav
At the end of March, 20X6 the balances in the several accounts of Nitin & Company are as follows:
Q. What do you understand by Business cycle? Business cycle: business cycle refers to the alternate expansion and contraction in the general business activity. in a period of t
Irregular Variation As the name suggests, the movement of the variable is random in nature without consistency and therefore, highly unpredictable. Since this type of irregular
Suppose that the business uses the double declining balance method to depreciate its equipment (a) Determine the net book value, depreciation expense, and accumulated deprecia
Determine the Amount of financing required The last factor determining company's cost of funds is the amount of financing required, where cost of capital increases as the fin
Assume Main Street Store’s Net Sales in 2010 were $1,000,000 and it’s Net Income in 2010 was $17,000. Thus, between 2010 and 2011 Main Street Store’s net sales increased 20%. Durin
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