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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 for temporary current assets while long-term financing is used for permanent fixed assets and current assets. The major benefit of this approach is that as temporary current assets are sold off the proceeds can be used to pay off the short-term debt.
Strong form level of Efficiency This level states that price reflects all the available public and private information (past, present and future information). If the hypothesis
Calculate Debt or Equity Ratio XYZ LIMITED Key data related to XYZ for last three years is as follows: 2011/12 2010/12
Step by step approach to completing a statement of cash flows Step by step approach to completing a statement of cash flows Step 1
what type of financing is appropriate to each fim
Floating rate securities can be broadly divided into following two parts: Floating-rate securities that have constant quoted margin. Floating-rate sec
• Sales revenue line drawn and labelled correctly and accurately • Fixed cost line (at $1,020) labelled and drawn accurately and correctly • Total costs line (starting at $1,
Define the market segmentation of the term structure of interest rates. Market segmentation: And also the investors’ expectations regarding future interest rates and thei
waht are the basic functions of profit & loss account
Short Term Solvency or Liquidity Ratio's CR: The Current Ratio is calculated by current assets to current liabilities and is the index of company's financial stab
Strategies of Hedge Funds: Hedge funds use a range of different strategies, and each fund manager can argue that he or she is unique and could not be compared to other manager
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