he capital maintenance concept followed under present GAAP is Economic capital Physical capital Financial and physical capital Real capital

Q: Define Working capital and gross capital.

A: Working capital:Working capital is the difference between the company’s current assets and current…

Q: Which capital investment methods require the use of a present value table?

A: Net Present Value: It is a measure of profitability for a project used primarily in capital…

Q: Distinguish between economic and financial capital.

A: Capital resource:  The equipment and goods that are being used for the purpose of generating other…

Q: Determining how to spread out the cost of a durable good over time is important for O Tax purposes…

A: Division of equivalent cost in the for the life of asset is known as spreading out cost which is…

Q: Working capital is an indication of the firm’s ________.A. asset utilizationB. amount of noncurrent…

A: Working capital (WC) seems to be a financial statistic that indicates the operating liquidity…

Q: oncept of capital maintenan -defines the level of profitabil

A: Capital maintenance: It is an accounting principle that says that a business should recognize its…

Q: Provide a brief overview of capital structure effects.  Be sure to identify the ways in which…

A: Answer: The effect of value of capital structure depends on the effect on the debt on weighted…

Q: Asset utilization ratios describe how capital is being utilized to buy assets

A: Assets refer to the resources that the company owned in the organization and utilized for the…

Q: Explain this concept: “The cost of capital depends primarily on the use of the funds, not the…

A: A company’s cost of capital can be said to be that minimum rate of return that the company or the…

Q: How are planning and working capital management related

A: Planning and working capital management related will be explained:

Q: xplain how is cost of capital used to make financial decisions? Why do you think funds generated…

A: In capital budgeting, the cost of capital is used to select projects with higher profitability so…

Q: Distinguish between the following measures of invested capital, and briefly explain when each should…

A:

Q: Weighted average cost of capital is the combined cost of capital using a capital mix. The capital…

A: The Answer

Q: 1. The formula being used to get the working capital is - a. Working Capital= Current Assets/Current…

A: Solution 1:- As per Bartleby honor code, if multiple questions are posted, the expert is required…

Q: A high capital gearing ratio indicates [A] under capitalization [B] over capitalization [C]…

A: Capital gearing Ratio is the term which means the amount of debt the company has relative to its…

Q: Differentiate between a capital investment and an expense investment

A: Investment refers to the allocation of the funds in the assets in order to get returns. The…

Q: Identify and discuss the two components of contributed capital

A: Contributed capital Contributed Capital is the price that the share holders have given to the…

Q: a. Explain the description and show examples of the following terms completely and clearly: implicit…

A: The financial system of a nation includes different components such as financial institutions,…

Q: allocated to a capital

A: Company Allot share after Receiving Application If Application is oversubscribed then Company can…

Q: MM Approach of Capital Structure is similar to which other approach Net Income Approach O Gross…

A: The Modigliani and Miller Approach (MM Approach) of the capital structure states that the value of…

Q: i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why…

A: Capital expenditures are typically one-time large purchases of fixed assets that will be used for…

Q: The weights used in calculating the weighted average cost of capital should be based on ___

A: The Answer:

Q: Choose the correct.Cost of capital is helpful in corporative analysis of various:  A. Source of…

A: Answer:   Option A.

Q: Working Capital Management is concerned with management of Select one: a. Long term capital b.…

A: Working capital management helps to ensure smooth operations of the business.

Q: or the ratio return on capital employed which of the following best describes capital employed : a-…

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: Explain the difference between capital assets, capital investments, and capital budgeting.

A:

Q: The weights used in calculating the weighted average cost of capital should be based on ________.…

A: Capital structure of the company contains, debt, preferred stock and equity. To get maximum value of…

Q: When should the investment in working capital be treated as capital expenditure?

A: Working capital:   It is the form of capital used by the business for day-to-day operations. Working…

Q: weighted average cost of capital

A: WACC = (kd * (1 - t) * Wd) + (kp * Wp) + (ke * We); where, kd = Pre-tax cost of debt t = Tax rate Wd…

Q: Working capital management refers to a) the management of cash flows b) capital structure c)…

A: Firms may require working capital for various purpose

Q: How to calculate working capital, current assests, current liabilities, quick assets, quick ratio…

A:

Q: How to make capital investment choices based on the internal rate of return (IRR)

A: Capital investment choices based on the internal rate of return (IRR) will be explained:

Q: The computation of total asset requirement is similar with judgmental approach' true or false Net…

A: The answers for true or false questions and relevant explanation are presented hereunder : What is…

Q: When is WACC (weighted average cost of capital)  commonly used

A: The weighted average cost of capital represents the rate that has been expected to pay to the…

Q: monetary working capital

A: Working capital is the capital that keeps revolving around the business. This is the capital that…

Q: What is the operating cash flow? The capital spending? The change is net working capital? The cash…

A: Capital spending is termed as the amount spent by the firm in the year to purchase or maintain the…

Q: Briefly explain the meaning of working capital and working capital management. Also explain the…

A: Explaination: Working capital is an essential term that measures the amount of operational cash…

Q: Capital budgeting techniques comes under which function of financial manager a. Tax Management b.…

A: Capital budgeting means where large and long term investment has to be made in project .

Q: compare ordinary assets from capital assets

A: Ordinary Assets:-  A per tax code Ordinary Assets are the assets which are held by the tax payer for…

Q: Define each of the following terms:a. Working capital; net working capital; net operating working…

A: a) Working capital: Working capital refers to the excess amount of current assets over its current…

Q: Explain how to classify working capital according to its “components” and according to “time”…

A: Working capital can be categorized on basis of Concept (gross working capital and net working…

Q: The ratio sales to working capital is a measure of

A: Working capital turnover  ratio is a measure to determine how efficiently a Company's working…

Q: Which of the following is not an element of working capital? a. inventory b.property, plant and…

A: The question is multiple choice question  Required  Choose the Correct Option