Matching principle of working capital financing
What is the matching principle of working capital financing and also explain the benefits of following this principle.
Expert
The matching principle is when short-term financing is used for temporary current assets while long-term financing is used for permanent current assets and fixed assets. The main benefit of this approach is that as temporary current assets are sold off the proceeds can be used to pay off the short-term debt.
Remark on the following statement: "As the U.S. imports more than it exports, it is essential for the U.S. to import capital from foreign countries to finance its present account deficits."The statement presupposes that the U.S. present account
Does High operating leverage mean high business risk. Elaborate the statement.
Explain probability of some buses having arrived when the Poisson process is utilized.
Elucidate the factors which affect the choice of a minimum cash balance amount.
What is volatility in finance?
In the year of 1995, a working group of French chief executive officers was set up by the French Association of Private Companies (AFEP) and Confederation of French Industry (CNPF) to study the French corporate governance structure. The group reported the prov
Why does put-call parity not hold, when option is American?
How we get conservative estimate of the whole risk with a coherent measure of risk?
Explain the conditions for assuming a deterministic stock price path for an equity option.
Give an example of Model-independent hedging.
18,76,764
1955472 Asked
3,689
Active Tutors
1416562
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!