Define the term capital expenditure.

Q: Define Working capital and gross capital.

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

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: calculate the capitalized value

A: Capitalized Value is the actual amount of an asset. It is considered when there is ownership of an…

Q: Describe the Capital Expenditure process

A: Capital expenditure as the term suggest is a one time usually a balance sheet item. Usually a…

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: Define the term the working-capital investment?

A: The working capital is known as the net working capital which is the measure of the company’s…

Q: Describe how to categorise working capital into "components" and "period" categories explain

A: The distinction between fixed and variable working capital is critical, especially when obtaining…

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: What is a donated capital and how it is accounted?

A: Donated capital is defined as assets given as gift to the entity.

Q: Define capital requirement ratio (CR)

A: Answer: Capital requirements are nothing but regulatory guidelines for banks that specify the amount…

Q: Define capital components

A: It is the discounted rate that has been calculated by the company on the basis of which present…

Q: Distinguish between the company cost of capital and project cost of capital?

A: Answer: Differences between project cost of capital and company’s cost of capital: Project cost of…

Q: How are planning and working capital management related

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

Q: the difference between capital expenditure and revenue expenditure.

A: Expenditure is defined as spending money on something. This can be a cash payment or the exchange of…

Q: Define capital expenditure

A:

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

A:

Q: Describe the capital investments methods.

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

Q: Discuss the Cost of capital approach ?

A: Cost of capital is the required return necessary to make a capital budgeting project, such as…

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: 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: allocated to a capital

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

Q: What is the difference between capital expenditure and revenue expenditure? Give an example of each.

A:

Q: Derivation of capital asset pricing model

A: The Capital Asset Pricing Model (CAPM) relates the returns on individual assets or entire portfolios…

Q: Describe the methods for making capital budgeting decisions.

A: Capital investment analysis: Capital investment analysis is the process by which management plans,…

Q: Explain how a gain or loss on disposal is handled in a capital-budgeting analysis.

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

Q: Define the term Working Capital?

A:

Q: Why should the capital expenditures be capitalized?

A: Capital Expenditures:   Capital expenditures are those which provide future economic benefits by…

Q: When does the Capital expenditures occur?

A: Capital expenditure is the money spent by business on acquiring fixed assets like land, building…

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: What is the difference between capital expenditure and revenue expenditure?

A: Capital Expenditure: Expenses Incurred and the corresponding benefit out of such expenses lasts for…

Q: Define Capital budgeting.

A: Capital budgeting is used by management to know  which projects will give the best return during  a…

Q: Define how to record capital expenditure.

A: Capital expenditure: It refers to the amount spent on acquiring, maintaining, and improving the…

Q: Give a conclusion about capital budgeting and its techniques.

A: Capital budgeting is the technique that is employed by businesses to make an evaluation of major…

Q: The estimated capitalized cost is $

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: What is an example or scenarios of Capital Allocation Line (CAL)?

A:

Q: monetary working capital

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

Q: capital expenditure or a revenue expenditure.

A: Answer – Capital expenditures are those expenditure which improves the performance of assets and…

Q: How do the engineers make capital-expenditure decisions based on prediction?

A: Capital-expenditure decision The process of decision making with regards to the investment to be…

Q: Define the term capitalize.

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

Q: Define Working capital.

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

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: 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: Define the term financial assets.

A: Financial Assets: Financial assets are referred to as assets that occur from contractual agreements…

Q: Define the term elements associated with investment activities?

A: In a simple language investment is like investing money to get a return out of it or to get more…

Q: Example of Capital Allocation Line (CAL)

A: Capital allocation line: Capital allocation line is also named as capital market line. Capital…

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.