Answer / james e

Capital Work in progress means Work that has not been
completed but has already incurred a capital investment
from the company.This is usually recorded as an asset on
the balance sheet.Capital WIP is referred to as Assets
under Construction and are represented by a specific Asset
class. Usually depreciation is not charged on Capital
WIP.Subsequently on the actual readiness of the asset for
commercial production, the Asset Under Construction gets
capitalized to an actual asset.

Capital Commitment is Allocation of funds for a possible
liability in the near future arising out of capital
expenditure. Firms must disclose their capital and
financial commitments in notes (footnotes) accompanying a
balance sheet.A capital commitment is a financial term that
can be used in two similar ways. Capital commitments can be
described as the complete inventory of stocks that are in
the possession of market makers. In a related manner, a
capital commitment can also refer to a business decision
that is made by a corporation to invest a portion of its
long-term assets over a specified period of time.In the
case of relating to inventories of stock, a capital
commitment can be viewed as a risk for the market maker.
This is due to the fact that inventories of stocks can
change in value over time. Depending on the performance of
the stock market, the value of those stocks may rise, or
they may fall. The risk to the market maker is that the
stocks will not appreciate, which will ultimately reduce
the overall value of the investment portfolio. Just as with
the concept of a capital commitment relating to an
inventory of stocks, companies looking to invest resources
in a business venture want to take steps to protect their
capital commitment. This is often accomplished by employing
the basics of capital budgeting

Answer / sravan464

work in progress and work in process are equal because both
means that work not yet completed.

18. If the real gross domestic product of US has increased, but the production of goods remained the same, then the production of services has; a) Increases b) Decreases c) Remained same d) Would vary

5 Answers   Capital IQ,

---

what about your self

8 Answers   Capital IQ, FactSet Systems,

---

i AM CURRENTLY DOING B.COM. i INTEND TO PURSUE MY MASTERS AT USA IN ECONOMICS AND FINANCE OR ACCOUNTING...CAN U TELL ME THE CRITERIA AND WHICH EXAM DO I NEED TO QUALIFY FOR???

0 Answers  

---

please tell me debit credi entry , in respect of salary advance and how to deduct,advance paid to employee

6 Answers   Morgan Stanley, Tops Technologies,

---

• What are the types of cash flows?

0 Answers   Mellon,

---

Who are called as partners

3 Answers  

---

What do you mean by pecuniary transaction?

1 Answers   Accounting,

---

What is the accounting treatment for preoperational expenses

1 Answers  

---

EXPAND_________BID

2 Answers  

---

what do u mean by single error and double error in accointing errors?

0 Answers   Everest Bank,

---

ABC is a person he is paying rent every month last month he did not paid the rent and current month he paid this month rent and also last month rent. so now what is the journal entry?

2 Answers   Amazon,

---

what is inflation?

12 Answers  

---