low much is the cash

Q: What is capital rationing?

A:

Q: What about time flows and cash Value money?

A: The time value of money refers to a sum of money that is worth more now than the same sum of money…

Q: What is Internal Rate of Return - Variable Cash Flows with Reversion?  Please provide examples.

A: The internal rate of return is the one of the discounted techniques of capital budgeting which is…

Q: What is meant by the term time value of money?

A: Time value of money is a concept that says amount today will have more value than amount in future…

Q: Describe and apply the lower-of-cost-or-net realizable value rule.

A:

Q: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: What are the Uneven-Payment Series?

A: What are the Uneven-Payment Series.

Q: Explain negative inflation premium.

A: Negative inflation premium, also known as deflationary premium, refers to a situation where the…

Q: What is the cash conversion cycle? What is its equation?

A: The CCC tells firms that in how many days’ firms will realize its cash from its operations. It is a…

Q: When are credits increases? When are credits decreases?

A:

Q: Discuss the following components of break-even analysis: fixed costs, variable and semi-variable…

A: Break-even point: It is the point at which the contribution margin earned on sales is equal to fixed…

Q: Why does the time value of money component arise?

A: Time value of money: The value of amount on hand today is more value than the value of amount…

Q: What is WACC and why would that be used as the discount rate?

A: WACC stands for Weighted Average Cost of Capital. It is a calculation of a firm's cost of capital in…

Q: Drw a Cash flow diagram for comparing cost-only?

A: Initial costs  The occurrence of cost at the time of design and the construction of the project.…

Q: Understand and apply the lower-of-cost-or-net realizable value rule.

A:

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

Q: Cost of Money is influenced by different factors”. What are those? How the cost of money is…

A: The cost of money or cost of capital is the minimum return a project has to generate for being…

Q: Why is Money multiplier isn't a fixed number and the multiplier process isn't a mechanical relation

A: Money multiplier is inversely related to deposit ratio and change according to that. It is not fixed…

Q: What is liquidity premium (LP)?

A: Answer: Interest rate theory on liquidity premium is a significant concept in bond investment. It…

Q: What is the difference between g Operating Margin and Net Margin?

A:

Q: What do the Liquidity ratios show?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: what is meant by Profit and Cashflow and how they are different?

A: Each and every business organization deals in either goods or offering services to their customers…

Q: What was the margin of safety in revenue?

A: Margin of safety in revenue = Fixed cost/Contribution margin ratio

Q: What is net operating margin ?

A: operating profit is the companies earnings after deducting operating expenses.  operating profit =…

Q: What is the reason that makes gross profit margin increases and decreases?

A: The gross profit margin is calculated by deducting the cost of goods sold from the sales revenue and…

Q: Describe the advantages of the dollar-value LIFO method.

A: Definition:   Dollar value LIFO method: In this method, the valuation of inventory is calculated on…

Q: What is the importance of liquidity?

A: Introduction: Liquidity is nothing but the ability of the bank to turn money into cash and to be…

Q: The modified internal rate of return (MMIR) is the discount rate that forces the _____.

A: Explanation: Modified internal rate of return can be better understood from the below formula, where…

Q: Money acts as a

A: MEANING OF MONEY

Q: When npv is negative, the discount rate is greater than the actual return on investment. A.…

A: Net present value is the method used in capital budgeting to analyse various investments, projects,…

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.