Answer Posted / deepika
liabilities are debts,they are amount whichthe firm owes to
creditiors
liabilites= assets-capital
Is This Answer Correct ? | 5 Yes | 1 No |
Post New Answer View All Answers
Is it compulsary to give TOEFL for applying US visa.
What is the difference between cfa and csa?
What are assets minus liabilities?
Tell me why did you select accounting as your profession?
What is the importance of accounting standards?
difition of reserve & surplus
i need clarification about tds will be calculate before deductions or after deductions on gross salary+incentive
What is the marginal cost formula?
Case Study: Deepak Hand tools Private Limited DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
How to pass the entry in tally for demolished of building?
hi to all.... what is the treatment for Work-In-Progress in Tally...please answer for it as early as possible... thanks & regards
Explain me your current/former role, your responsibilities, and how success is/was measured?
What is Prepaid Entry
If a consultant charged his fee n receive so can i pass the journal entry n how i can i maintain bal sheet
What are the difference between Debit Memorandum and Credit Memorandum?