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In this method, approximation of various assets here excluding cash and including liabilities are made getting into consideration the transactions in the ensuring period. Afterward, a balance sheet is prepared that depends on these forecasts. Liabilities and Assets are termed as 'Projected balance sheet'. The dissimilarity between liabilities and assets of this balance sheet is termed as shortage or surplus cash of such period. If the net liability is more than net assets, this represents excess cash that is not needed by the firm. The management may plan for such investment. Conversely, if total assets are more than net liabilities, so it shows the deficiency of working capital that is to be arranged through the management either from bank overdraft or by the other sources.
advantage and disadvantage of incremental budget
The F–test The significance of the regression results can be tested by using the F- statistics. The F-statistics is a ratio which compares the explained sum of squares and t
What are the Resons to use Variance analysis Variance analysis should be a continuous process for following reasons: 1) Labor rates, salary levels etc, changes due to union
Cost comprise impact Some of the policy choices which tend to have the maximum impact on cost comprise: Product performance, configuration, and characteristics Mix and
what do you debit and what do you credit in adjusting entry for prepaid rent?
a annual sales are 585000 unit. the purchase price per unit is $2. the carrying cost is 26% of purchase price of goods safty stock is 100000 units on hand two weeks are required fo
Classification of ratio according to significance The ratios have also been classified according to their significance. Some ratios are more important than other and the fir
Examples
In this scheme, non-revolving line of credit is extended to the seller to be utilized inside a stipulated period. Assistance is provided to manufactures for promoting sale of their
What is Budgetary control Budgetary control is the process of determining various budgeted figures for the enterprises for the future period and then comparing the budgeted fi
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