Which of the following is not an element of working capital? a. inventory b.property, plant and equipment C. trade receivobles d.cash

Q: Identify and explain the various aspects of the balance sheet linked with working capital and the…

A: Working capital is the amount of liquid fund available to a business to conduct day to day…

Q: Define Working capital and gross capital.

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

Q: Is a drawing account capital?

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

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: Why is working capital given special attention in the process of analyzing balance sheets?

A: Working capital is the measure which evaluates the ability of a company to pay off the short-term…

Q: What is owner Capital listed as a debit or credit

A: Solution: Owner capital is the amount of capital invested in business by owner. This is shown as…

Q: Are debtors calculated at selling price or finished goods price for net working capital? and why?

A: Net working capital means the difference between the current assets and current liabilities. Current…

Q: haat is the relationship between Income Measurement and Asset Valuation?

A: Profit or loss calculation is indeed a simplified method of calculating income. An accountant…

Q: The cost of capital includes the cost of equity, the cost of long-term debt and the cost of accounts…

A: The capital of a corporation is the amount of money or funds that a corporation uses for operating…

Q: In calculation of weighted average cost of capital, is trades payable included?

A: Trade payable- Amount that is payable by a firm  for goods purchased or services availed and it…

Q: What are the main components of a company’scost of capital?

A: Cost of capital It is essential to come back to make a capital planning venture advantageous, for…

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: 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: How should you record capital expenditure? Debit a liability Debit capital Debit an expense Debit…

A: Capital expenditure: Capital expenditure refers to the expenditures that are incurred to increase…

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: You find capital in the same side of the balance sheet as liabilites because of ______________.…

A: From the business point of view, capital is also considered as a liability towards the owner…

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

A:

Q: How is the weight in the weighted average cost of capital calculated

A: WACC = (Weight of Common stock * Cost of common stock) + (Weight of preferred stock * Cost of…

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 the relationship between Income Measurement and Asset Valua

A: Profit or loss calculation is a simplified method of calculating income. An accountant defines…

Q: Which of the following would not be considered a form of capital? A. Cash B. Credit Card C. Money…

A: Introduction: Capital: Owners contribution in business called as Capital.

Q: How is working capital handled in the calculation of cash flows from a capital investment? Is it…

A: Working capital or net working capital is equals to firm’s current assets minus current liabilities,…

Q: what is the difference between paid in capital and retained earnings

A: The paid in capital and retained earnings are the part of statement of shareholders equity.

Q: How much is the total expense? How much is the net income? What is the balance of the ending…

A: Accounting equation of the business says that total assets must be equal to total liabilities and…

Q: following heads in the accounti

A: Accounting principle follows the double entry system of recording transactions. To reconcile the…

Q: A firm's financing costs include Select one: A. both A and B. B. interest expense C. depreciation…

A: The cost of interest or any other cost that is incurred by the firm at the time of borrowing funds…

Q: Is cost of capital set by investors or managers?

A: Cos of capital (Coc) is rate of return required to make capital budgeting decisions for example,…

Q: What is the total capital required for both off- and on-balance-sheet assets?

A: On-balance sheet items are those which are represented as a part of the company's financial…

Q: Define each of the following terms:a. Capital structure; business risk; financial risk

A: Introduction: While selecting a capital structure main motive of the company is shareholders wealth…

Q: what is meant by Working Capital and, the meanings of Receivables, Inventory and Payables?

A: Meaning of Working Capital  Working capital, also referred as net working capital (NWC), is the…

Q: What is the difference between authorized capital, issued capital and additional paid in capital?

A: The assets and cash of a firm are referred to as capital. Capital might be cash, machinery,…

Q: What is net operating working capital? Why does it exclude mostshort-term investments and notes…

A: Introduction: Working capital is the capital of company that is used in its day-to-day operational…

Q: he capital maintenance concept followed under present GAAP is Economic capital Physical capital…

A: SOLUTION- CAPITAL MAINTENANCE CONCEPT ALSO KNOWN AS CAPITAL RECOVERY IS AN ACCOUNTING CONCEPT BASED…

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: How do the types of assets used affect a firm’s capital structure?

A: There are 2 types of assets, fixed assets and current assets. Fixed assets have life for long period…

Q: Describe about retain earning and paid in capital.

A: Retained earnings: “Retained earnings” are that portion of profits which are earned by a company but…

Q: What is a working capital? What is its importance in the business process?

A: Accounting is a way of recording money related transactions in the financial statements of an…

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: ______ ratios are used to measure the speed in which various assets are converted into sales or cash

A: A firm can convert its assets into cash. Those assets that can be converted into cash within a short…

Q: Working capital is the difference between your total assets and total liabilities. * Right Wrong

A: Working capital is the difference between companies current asset and current liability, it is the…

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: True or False Asset utilization ratios describe how capital is being utilized to buy assets

A: Asset  utilization ratio = Total revenue/Average  assets

Q: What does it mean when someone refers to acompany’s capital structure?

A: Every business needs money and funds in order to run its operations effectively. There are various…

Q: The capital account to be credited to Elor

A: There are 4 partner in Partnership firm sharing profit ratio 2:2:2:4. Out of these four partner Sam…

Q: is NOT a consideration for Cost of Capital? A. Invetsor requirements B. Size of the Company C. All…

A: Cost of capital is very important for the company and cost of capital will decide the value of…

Q: Differentiate between net working capital and net operating working capital.

A: net working capital: Net working capital is different from operating working capital.  it focus on…

Q: How does accounting help the capital allocation process?

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