Define how to record capital expenditure.
Q: How should you record a capital expenditure? a. Debit a liability b. Debit capital c. Debit an…
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Q: Define Working capital and gross capital.
A: Working capital:Working capital is the difference between the company’s current assets and current…
Q: Define capital structure decision
A: The capital structure is an appropriate mixture of a firm's debt and equity used to fund its overall…
Q: Differentiate between Reserve capital and Capital Reserve on the basis of time when it can be used.
A: Capital: It refers to the funds raised to support the business. It is the difference between the…
Q: Describe the capital budgeting process.
A: The Capital Budgeting process is the process of planning which is used to evaluate the potential…
Q: How to calculate net present value with capital expenditures.
A: Capital expenditure refers to the amount incurred by the busi9ness in purchasing fixed assets for…
Q: Define the term capital expenditure.
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Q: Distinguish between investment in physical assets and investment in working capital?
A: Fixed capital ventures or investments speak to long term resource obtaining and maintenance.
Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…
A: Capital receipts: These receipts are income that is earned from the investment and financing…
Q: What is the calculation for return on assets (ROA)? Explain what ROA measures?
A: ROA is the abbreviation used for Return on Assets. It a common accounting term and this is usually…
Q: What will be the accumulated amount in an investment account
A: As per the concept of the Time value of money, today’s money value has more valuable than tomorrow.…
Q: Give two examples of capital receipts which are directly added to the capital fund.
A: A capital receipt is a receipt for the business that either create a liability or results in the…
Q: What is the purpose of using the retained funds?
A: After paying the dividends, the company retains the remaining net income which is called addition to…
Q: Describe the methods used for analyzing the capital investments of organizations.
A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…
Q: Define target capital structure
A: Target capital structure is a proportion of equity, debt, or preferred stock in such a manner that…
Q: How can we determine the net change in working capital requirements?
A: Working capital:Working capital refers to the excess amount of current assets over its current…
Q: What assets are viewed as current financial resources?
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Q: How should the capital structure weights used to calculate the WACC be determined?
A: Weighted average cost of capital (WACC): It is a figuring of the cost of capital of an organization,…
Q: Describe the capital investments methods.
A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…
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: Explain why the cost of capital is measured on an after-tax basis why is use of a weighted average…
A: This question consists of two subquestions i.e. (a) Explain why the cost of capital is measured on…
Q: Define a financial asset
A: A contractual financial instrument is classified into financial assets and liabilities. They are an…
Q: Describe the methods for making capital budgeting decisions.
A: Capital investment analysis: Capital investment analysis is the process by which management plans,…
Q: Why should the capital expenditures be capitalized?
A: Capital Expenditures: Capital expenditures are those which provide future economic benefits by…
Q: Distinguish between the accounting for capital expenditures and revenue expenditures.
A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…
Q: Explain Initial Capital Contributions with example?
A: Initial contributions are generally made by members to take part in the company's interests. Many…
Q: Define Return on assets.
A: Introduction: Return on Assets : Return on assest is a ratio which defines that how much profit…
Q: Where is the capitalized income recorded? Debit aide of Income and expenditure A/C Deducted from…
A: Capitalised income is income related or gained from the capital assets or long term assets in the…
Q: Net Income is a ( SOURCE / USE) of funds.
A: Net income is the amount of profit that is arrived by paying all expences from sales or revenue. In…
Q: describe and contrast Capital Projects Funds and Debt Service funds
A: Capital projects fund used to acquire or to construct the capital facilities. And the resources for…
Q: Explain why it is important to distinguish between capital expenditure and revenue expenditure, and…
A: Expenditures: The Expenditures are the way of spending money on something, or the money that is…
Q: capital expenditure or a revenue expenditure.
A: Answer – Capital expenditures are those expenditure which improves the performance of assets and…
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: Classify Revenue or capital expenditure?
A: Introduction: Revenue Expenditure: Its a Recurring expenditure. Expenditure spent with in 12 months…
Q: Describe the process of calculating the Company Cost of Capital?
A: Firms often operate their company using the capital generated from different sources. That involves…
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: What is a capital expenditure versus a revenue expenditure?
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Q: Distinguish between revenue and capital expenditures, and account for them.
A: Meaning of Expenditure Expenditure is the amount of various expenses incurred for the operations of…
Q: How capital expenditure(investment) analysis helps in evaluating the inflows and outflows of cash?
A: Capital expenditure is a sort of investment in the business either by making a new product line or…
Q: Describe the process of determining the Company Cost of Capital?
A: Cost of capital : It is that rate of return company has to pay to raise the capital to start a…
Q: how do you find the owner's capital?
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: Define the term financial assets.
A: Financial Assets: Financial assets are referred to as assets that occur from contractual agreements…
Q: Example of Capital Allocation Line (CAL)
A: Capital allocation line: Capital allocation line is also named as capital market line. Capital…
Q: . Determine the cost of each capital structure component. • Calculate the weighted average cost of…
A: WACC: It is the weighted average cost of capital of the firm for raising capital from different…
Define how to record capital expenditure.
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