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q define implicit cost and explicit costsimplicit cost and explicit costs the implicit cost is the rate of return associated with the best invests
q what do you mean by average cost and marginal costaverage cost and marginal cost the average cost is the combined cost as explain above but for the
1future cost and historical cost financial decision is based on the future cost and not on the historical cost the decision related to the future and
q importance of the cost of capital1 evaluating financial performance the actual profitability of the project is compared to the projected overall
q cost of capitalthe terms of cost of capital refers to the minimum rate of the return a firm must earn on its investment so that the market value of
q explain about money market mutual fundsmoney market mutual funds money market mutual funds mmmfs focus on short-term marketable securities such as
q show inter-corporate depositsinter-corporate deposits inter-corporate lendingborrowing or deposits icds is a popular short-term investment
q show certificates of depositscertificates of deposits certificate of deposits is papers issued by banks acknowledging fixed deposits for a
q what is commercial paperscommercial papers commercial papers cps are short-term unsecured securities issued by highly creditworthy large companies
q what do you mean by treasury billstreasury bills tbs are short-term government securities the usual practice in india is to sell treasury bills at
q basic objectives of cash managementthe basic objectives of cash management are two-fold1 to meet the cash disbursement needs payment schedule and 2
q what do you meant by yieldinvestment should be in such securities which yield the highest return however safety should not be sacrificed at the
q what is maturitymaturity the maturity period of the securities should be short otherwise the company might suffer losses on account of getting the
q what do you mean by marketabilitymarketability the firm must be able to sell its holdings and realize cash as and when required the securities must
investing surplus cash cash not required for temporary periods of short durations can be invested in near-cash assets ie marketable securities which
q determining optimum liquid balanceliquid balance balance of cash and marketable securities must be maintained at the optimum level it is the level
q security required in bank finance1 hypothecation under this arrangement the borrower is provided with working capital finance by the bank against
q what do you mean by letter of credita letter of credit is an arrangement whereby a bank helps its customer to obtain credit from its customers
q what is lending systemunder the note lending system the borrower takes a loan usually of 90 days duration against a promissory note the loan may be
purchasing and discounting of bills is the most important from in which a bank lends without any collateral security present day commerce is build
q can you explain about overdraftsoverdraft means an agreement with a bank by which a current account-holder is allowed to withdraw more than the
q what is cash credita cash credit is an arrangement by which a bank allows his customer to borrow money up to a certain limit against some tangible
q explain about loans - forms of bank financewhen a bank makes an advance in lump-sum against some security it is called a loan in case of a loan a
q forms of bank financea firm can draw funds from a bank within the maximum credit limit sanctioned it can draw funds in the following forms1
q what is deferred incomesdeferred incomes are incomes received in advance before supplying goods or services they represent funds received by a firm