Capital Expenditure
Jennifer edwards What is Capital Expenditure ? Capital expenditure can be defined as the amount of money or the amount of expense that a company uses to purchase, upgrade, improve or extend…
Venture Capital Funding
Venture capital funding is a kind of financing in small and medium enterprises where investors invest their money in the venture having a chance of potential growth and seeks equity…
Profitability Index (PI)
Profitability index is a ratio that identify and compares the relationship between the total costs involved in the project and the profit returned from that project. The ratio of profitability…
Simple Rate of Return Method
Shamsa Rafique Simple Rate of Return Method: Learning Objectives: Compute the simple rate of return for an investment project. Definition and Explanation: The simple rate of return method is another capital budgeting…
Screening Decisions and Preference Decisions
Screening Decisions and Preference Decisions: Learning Objectives: Define, explain and give examples of screening and preference decisions. Capital budgeting decisions fall into two broad categories: Screening decisions. Preference decisions. Screening…
More About Capital and Revenue Expenditures
More About Capital and Revenue Expenditures: Capitalized or Deferred Revenue Expenditures: Where a certain revenue expenditure incurred is of such a nature that its benefit is likely to be spread…
Difference Between Capital and Revenue Expenditures
Abida Rehman Difference Between Capital and Revenue Expenditures: Learning Objectives: What is the difference between capital and revenue expenditures. Following is the difference between capital and revenue expenditures. Capital Expenditures Revenue Expenditures…
Income Tax and Capital Budgeting Decisions
Income Tax and Capital Budgeting Decisions: Learning Objectives: Include income taxes in a capital budgeting analysis. In our discussion of capital budgeting decisions in this chapter, we ignored income taxes…
Budgeting and Planning
After studying Budgeting and Planning article you should be able to: Understand why organizations budget and the processes they use to create budgets. Prepare a sales budget, including a schedule…
Future Value and Present Value Tables
Sana Ahmed Future Value and Present Value Tables Future Value Tables: Table 1: Future Value of $1 Table 2: Future Value of Ordinary Annuity (Annuity in Arrear - End of Period Payments)…
Present Value and Future Value – Explanation of the Concept
Present Value and Future Value - Explanation of the Concept: Learning Objectives: Understand present value concepts and the use of present value tables. Compute the present value of a single…
Review Problem 2: Comparison of Capital Budgeting Methods
Review Problem 2: Comparison of Capital Budgeting Methods Lamer company is studying a project that would have an eight-year life and require a $2,400,000 investment in equipment. At the end…
Extended Example of Net Present Value Method
Extended Example of Net Present Value Method: Difficulties Encountered in Process Costing Procedures: Learning objectives of this article: What are the difficulties or Limitations in a process costing procedure?…
Cash Budget Definition
Cash Budget Definition: A detailed plan showing how cash resources will be acquired and used over some specific time period. Click here to read full article about cash budget
Cash Budget | Cash Budgeting
Cash Budget | Cash Budgeting: Learning Objectives: Define and explain a cash budget. What is the purpose of a cash budget How to prepare a cash budget. Definition and Explanation:…
Capital and Revenue Receipts, Payments, Profits and Losses
Capital and Revenue Receipts, Payments, Profits and Losses: Learning Objectives: Define and explain and give examples of capital and revenue receipts and payments? Define and explain and give examples of…
Capital Gearing Ratio
Capital Gearing Ratio: Definition and Explanation: Closely related to solvency ratio is the capital gearing ratio. Capital gearing ratio is mainly used to analyze the capital structure of a company.…
Review Problem 1: Basic Present Value
Review Problem 1: Basic Present Value Computations: For each of the following situations is independent. Workout your own solution to each situation, and then check it against the solution: Situation…