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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.
Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in
Q. Consequence of the cash operating cycle? The cash operating cycle is the length of time among paying trade payables and receiving cash from receivables. It is able to be cal
Explain the term- quality of decisions Performance and business risk This is focussed on " quality of decisions ". The comparison of an organisations performance with t
It is the most useful method of promoting economic development. It may be used for the development of economic and social overheads such as construction of roads, railways, power p
Discuss the applicability ofan operating cycle in a poultry business(consider broilers)
what that mean?
Working capital cycle in a manufacturing business Average time raw materials are in stock (raw materials/purchases x 365 days) Plus Time
Extent of Financing Required It is clear that sales are unsure with low, high and medium estimates of demand. This of itself gives a few uncertainty but the reliability and pr
Types of financial incentive schemes Performance associated pay (PRP) systems e.g. piecework or sales commission Bonuses e.g. supplementary payments for targets or ai
Principles of corporate governance Leadership: Every corporation should be headed by a proficient BOD which should exercise leadership, venture, honesty and judgments in dire
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