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Explain negative consequences of a company holding too much cash? A company holding too much cash would be giving up the chance to invest more in income generating assets
Debt Financing: Whenever a firm raises money for the working capital or capital expenses by selling bonds, bills, or notes to individual and or institutional investors. In return for lending money, the individuals or institutions become creditors and
Describe capital rationing? Should a firm practice capital rationing? Why? Capital rationing is the practice of setting dollar restriction on what will be invested in new capital budgeting projects. Proprietorships, partnerships and private c
Financial Reporting: It is a set of documents made generally by government agencies at the end of accounting period. It usually enclose summary of accounting data for that time period, with background forms, notes, and other information.
Describe depreciation expense as it seems on the income statement. Accounting depreciation is the allocation of asset's primary cost over time. Depreciation cost on an income statement is the amount of the asset=s initial cost allocated to
Continuing Appropriation: This is an appropriation for the set amount which is obtainable for more than 1-year.
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