Internal financing refers to net income plus depreciation less dividends. Internal finance comes from internally generated cashflows. External financing refers to the other sources of funds which are available to the firm from outsiders that is debtors, shareholders and bond holders.
Charles W answered the question on December 27, 2017 at 13:50
-
Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment. (a) Payback period (b) Internal rate of return
(Solved)
Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment.
a) Payback period
b) Internal rate of return
c) Profitability index
Date posted:
December 27, 2017
.
Answers (1)
-
Explain the main basic factors that requires to be taken into account in selecting the best method of financing a plant expansion
(Solved)
Explain the main basic factors that requires to be taken into account in selecting the best method of financing a plant expansion.
Date posted:
December 27, 2017
.
Answers (1)
-
In reference to the stock exchange explain the meaning of (a) Bear market (b) Bid price (c) Dividend yield (d) Going public
(Solved)
In reference to the stock exchange, explain the meaning of
a. Bear market
b. Bid price
c. Divided yield
d. Going public
Date posted:
December 27, 2017
.
Answers (1)
-
Explain any four roles of stock exchange in an economy
(Solved)
Explain any four roles of stock exchange in an economy.
Date posted:
December 27, 2017
.
Answers (1)
-
What are the differences between Insurance and Hedging?
(Solved)
What are the differences between Insurance and Hedging?
Date posted:
December 17, 2017
.
Answers (1)
-
List two ways in which a business firm ensures that customer payments are converted into spendable form.
(Solved)
List two ways in which a business firm ensures that customer payments are converted into spendable form.
Date posted:
December 4, 2017
.
Answers (1)
-
Give the basic strategies that should be employed by a business firm in managing its cash.
(Solved)
Give the basic strategies that should be employed by a business firm in managing its cash.
Date posted:
December 4, 2017
.
Answers (1)
-
Write brief notes on( i) Hire purchase (ii) Credit sale (iii) Effects of goods repossessed on hire purchase transactions
(Solved)
a) Write brief notes on
i) Hire purchase
ii) Credit sale
iii) Effects of goods repossessed on hire purchase transactions
b) Fiona Limited bought Motor Vehicle on hire purchase terms. The transactions involved
the following:
i) The cash price Sh.800,000
ii) Hire purchase interest 25%
iii) Deposit 20% of cash price
iv) 5 annual equal installments.
The purchase was effected on 1st January 2015.All payments were made. Depreciation is at a rate of 10% per annum on straight line.
Required:
Asset account (3marks)
Hire purchase company account (4 marks)
Hire purchase interest account (3marks)
C In relation to investment accounting , distinguish the following terms
i) Cum – dividend and Ex – dividend (2 Marks)
ii) Bonus issue and Rights issue (2Marks)
d) ABC Ltd bought sh. 60,000, 10% loan stock of Expo ltd on 1st March 2008 at 90 cum- interest. Interest is payable half yearly on 30th June and 31st December.
Required:
Show the entries in ABC Ltd’s ledger for the year ended 31st December 2008. Ignore income tax. (6 Marks)
Date posted:
November 24, 2017
.
Answers (1)
-
Explain how a business can deal with various risks.
(Solved)
Explain how a business can deal with various risks.
Date posted:
November 14, 2017
.
Answers (1)
-
State and explain examples of marketing and sales risk.
(Solved)
State and explain examples of marketing and sales risk.
Date posted:
November 14, 2017
.
Answers (1)
-
State and explain examples of financial risk.
(Solved)
State and explain examples of financial risk.
Date posted:
November 14, 2017
.
Answers (1)
-
State and explain examples of strategic risks.
(Solved)
State and explain examples of strategic risks.
Date posted:
November 14, 2017
.
Answers (1)
-
Explain the factors an auditor should consider when determining the adequacy of a client’s internal control system
(Solved)
Explain the factors an auditor should consider when determining the adequacy of a client’s internal control system
Date posted:
October 31, 2017
.
Answers (1)
-
What is ledger?
(Solved)
What is ledger?
Date posted:
October 30, 2017
.
Answers (1)
-
What is contained in partnership deed?
(Solved)
What is contained in partnership deed?
Date posted:
October 28, 2017
.
Answers (1)
-
State and explain the concepts and principles of accounting
(Solved)
State and explain the concepts and principles of accounting
Date posted:
October 27, 2017
.
Answers (1)
-
State and explain the principles of financial accounting
(Solved)
State and explain the principles of financial accounting
Date posted:
October 27, 2017
.
Answers (1)
-
Explain the following (a)concept of residence for Incorporated entities (b)deductions allowed against rental income
(Solved)
Explain the following (a)concept of residence for Incorporated entities (b)deductions allowed against rental income
Date posted:
October 26, 2017
.
Answers (1)
-
Distinguish between regressive and degressive taxes
(Solved)
Distinguish between regressive and degressive taxes
Date posted:
October 26, 2017
.
Answers (1)
-
Explain the term TAXABLE LIMIT as used in taxation
(Solved)
Taxation
Theory of taxation
Date posted:
October 26, 2017
.
Answers (1)