Borrowed Capital:
The money which is borrowed by a company from outsiders for a specified period of time with a promise to repay the amount with interest over it is known as borrowed capital.
For example, long term debts, bonds payable, debentures, etc.
Owned Capital:
The money from the equity stockholders and reserves of the company is termed as owned capital. Owned capital is repaid only in case winding up of the company.
The president of a plastics company was quoted in a business journal as stating, .We haven’t had a dollar of interest-paying debt in over 10 years. Not many companies can say that.. As a stockholder in the company, how would you feel about its policy of not taking on debt?

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Chapter 14 Solutions
Introduction to Managerial Accounting - Connect Access
- MOH Cost: Top Dog Company has a budget with sales of 7,500 units and$3,400,000. Variable costs are budgeted at $1,850,000, and fixed overhead is budgeted at $970,000. What is the budgeted manufacturing cost per unit? Solvearrow_forwardGarrison's Finishing Department started the month with 15,000 units in its beginning work in process inventory. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Finishing Department. There were 30,000 units in the ending work in process inventory, which were 50% complete with respect to conversion costs. What are the equivalent units for conversion costs in the Finishing Department for the month?arrow_forwardDetermine comprehensive incomearrow_forward
- What is the amount of current assets ??arrow_forwardGeneral accounting 1.3arrow_forwardA company uses a process costing system. Its finishing department's beginning inventory consisted of 48,500 units, 40% complete with respect to direct labor and overhead. The department completed and transferred out 110,000 units during this period. The ending inventory consists of 38,000 units, which are 20% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $29,500 and overhead costs of $35,500 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is_.arrow_forward
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