Define each of the following terms:e. Operating current assets; operating current liabilities; net operating working capital; total net operating capital
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Define each of the following terms:
e. Operating current assets; operating current liabilities; net operating working capital; total net operating capital
Step by step
Solved in 4 steps
- Net Working Capital is equal to a. Current Assets - Non Current Liabilities b. Current Assets - Current Liabilities c. Non Current Assets - Current Liabilities d. Non Current Assets - Non Current LiabilitiesNet Working Capital is equal to a. Non Current Assets - Current Liabilities b. Non Current Assets - Non Current Liabilities c. Current Assets - Non Current Liabilities d. Total Current Assets - total Current LiabilitiesNet working capital is defined as:Select one:a. Fixed assets minus long-term liabilities.b. Current assets minus current liabilities.c. Total liabilities minus shareholders' equity.d. Current liabilities minus shareholders' equity.e. Total assets minus total liabilities.
- Define each of the following terms:a. Working capital; net working capital; net operating working capitalDistinguish between the following measures of invested capital, and briefly explain when each should be used: (a) total assets, (b) total productive assets, and (c) total assets less current liabilities.The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capital
- Explain the following measurement bases of the elements of financial statements and indicate how assets and liabilities are measured in each case: 1. Historical cost 2. Current cost 3. Realisable valueDiscuss the impact of the following ratios and usefulness to users of financial statements. Gross profit Margin Return on capital employed Operating profit (PBIT) percentage Asset turnover Gearing ratioNetworking capital refers to the A) firms investment in total assets B) firms' investment in current assets C) difference between the firm's current assets and its current liabilities D) Difference between the firms total assets and its total liabilities
- for the ratio return on capital employed which of the following best describes capital employed : a- share capital b- share capital + reserves c- share capital + current assets d- share capital + fixed assetsDefine each of the following terms:a. Capital structure; business risk; financial riskcalculate net income total assets total liabilties
