Accounting

Classification of Working Capital Working Capital refers to a firm’s investment in short term assets-cash, short term securities, accounts receivable, and inventories. It can be…

Importance of Working Capital Working capital is the lifeblood and nerve center of business. Working capital is very essential to maintain the smooth running of…

Disadvantages of Insufficient Working Capital Working capital measures a company’s ability to turn short-term assets into cash. The amount of working capital should be sufficient.…

Factors that Affecting Working Capital Requirements of working capital depend upon various factors such as the nature of the business, size of the business, the…

Determination of Working Capital Working capital is the difference between a company’s current assets and current liabilities. Determination of working capital requirement is one of…

Common Components of Cost of Capital Cost of capital is a composite cost of the individual sources of funds including equity shares, preference shares, debt,…

Meaning of Cost of Capital Cost of Capital is the rate of return the firm expects to earn from its investment in order to increase…

Statutory Company A company incorporated by a special Act of the legislature is called a statutory company. It is an autonomous body and is free…

As a consequence of a shift in any operation, an incremental cost is a difference in overall costs. Incremental costs are determined by analyzing, with…

Cost of capital is considered as a standard of comparison for making different business decisions. It is a useful finance and accounting tool that companies…

The Marginal Production Cost is the rise or decrease in the overall cost of manufacturing one more unit of a commodity or service one more…

Types of Cost of Debts The cost of debt is the overall average rate an organization pays on all its obligations. It is the rate…