What is Capital, Capitalization and Capital Structure in your own words.

Q: Is a drawing account capital?

A: Drawings: It refers to the withdrawals made by the owner from the business including cash, goods,…

Q: Explain with examples if you can what's meant by this theory briefly Capital Structure Theory

A: Capital structure theory is an important theory in financial management of a business organization.

Q: Write the capitalized-cost equation?

A: Answer: Capitalized cost is well-defined as the present value of an annual cost constant over an…

Q: What is the notion of capitalization effects and how does it work

A: The notion of capitalization effects and how does it work will be explained:

Q: What is the goal of capital structure management?

A: In simple words, capital structure management refers to the process under which the managers take…

Q: Define thoroughly what is Capital and give its composition

A: Capital is the amount of cash or any other assets that are being invested in the business. Capital…

Q: How is working capital calculated? Define Liquidity.

A: The working capital refers to the part of the capital that requires to meet the day-to-day…

Q: What are the ramifications of having Working Capital?

A: The Ramifications Of Having Working Capital Will Be Explained:

Q: How is Working Capital calculated?

A:

Q: What is issued capital? How does it differ from Authorized capital?

A: Company needs the funds for business purpose. Hence, Company raise capital.

Q: 1) What is meant by working capital?

A: Hi, Thanks for posting the questions. As per Q&A guidelines, The first question must be answered…

Q: What do you understand by Financial Capital ? What is the difference between Financial capital and…

A: The Answer

Q: What is a working capital, and how does it differ from other types of capital? What role does it…

A: Business process are the sequential steps followed by the stakeholders to reach a certain goal. Each…

Q: What is operating capital?

A: Introduction: In any business, operating capital is the most important asset that enables a company…

Q: Explain the problem of a capital-investment?

A: For the financing of capital investment, generally, the company considers operating cash flow of its…

Q: How does the Paid-in capital consist primarily of?

A: Share capital of the company means all funds raised by the company in exchange of shares.  Shares…

Q: Define asymmetric information theory (capital structure)

A: Capital structure plays an important role for any organization & it would be generally in the…

Q: A) What is cost of capital? What does it represent?   B)  Why is it important to estimate cost of…

A: Sources of Finance means from where a business or firm is taking money in order to fund out its…

Q: How much is capital will be credited to ariel?

A: Partnership is the association or agreement between two or more than two persons, in which they…

Q: Explain Capital Accounts?

A: Capital :                 Generally refers to the amount invested in an enterprise by its owners eg…

Q: What is capital

A: Capital is the value of money which is invested in the organisation for making the financial…

Q: Define the term Capital (Ownership) Costs?

A: The money value of goods and services consumed by the consumers and purchased by the producers is…

Q: What is meant by capital structure and how is it different from financial structure?

A: Capital structure of the company can be defined as the combination of various sources such as debt,…

Q: What is working capital? How does working capitalrelate to the operating cycle?

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

Q: Cost of Capital depends on its components and cost associated with its components’. Justify the…

A: The cost of capital repersent of company repersent its cost of financing. It referes to minimum rate…

Q: Define signaling theory (capital structure)

A: Capital structure: Capital structure is defined as mixture or proportion of all kinds of capital…

Q: Why isn’t accounting net income used in the net present value method of making capitalbudgeting…

A:

Q: How much is the legal capital?

A: Legal capital refers to the par value/stated value of the shares issued.

Q: Define the term capitalize.

A: Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in…

Q: Explain, using practical example how Capital expenditure should be capitalized?

A: Capital expenditure can be defined as an expense made for the purchase of a long-term physical or…

Q: how do you find the owner's capital?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: What are the Capital gains and capital losses?

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: What is a simple capital structure?

A: Capital structure Capital structure refers to a combination or mix of equity and debt in order to…

Q: How does accounting help the capital allocation process?

A: Capital allocation: A capital allocation is the process of allocating total capital amount into…