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Economics, Accounting & Business: Post your doubts here!
- Thread starter XPFMember
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Company needs finance for acquiring fixed Assets or business expansion, there are three sources of finance for available for company, first company can use retained earnings (which are accumulated profit for previous years not distributed as dividends), second option is that company can issue new shares which will increase capital and company can purchase assets or expand business, 3rd source is borrowing long term finance from 3rd party (Outside), this borrowing is done through issue of debentures, Debentures are like long term loan for company, company has to pay fixed interest on Debentures issued by company, For instance company issued 10%debenture 100,000, so company will pay 10 % interest every year on these debentures, So u can say debentures are like certificates which shows indebtedness of company & it is Non-current liability for company, I hope u understand, If u have an doubt u can ask... thank u
y do company has to pay interest when they r the ones issuing bonds?Company needs finance for acquiring fixed Assets or business expansion, there are three sources of finance for available for company, first company can use retained earnings (which are accumulated profit for previous years not distributed as dividends), second option is that company can issue new shares which will increase capital and company can purchase assets or expand business, 3rd source is borrowing long term finance from 3rd party (Outside), this borrowing is done through issue of debentures, Debentures are like long term loan for company, company has to pay fixed interest on Debentures issued by company, For instance company issued 10%debenture 100,000, so company will pay 10 % interest every year on these debentures, So u can say debentures are like certificates which shows indebtedness of company & it is Non-current liability for company, I hope u understand, If u have an doubt u can ask... thank u
also, cn u pls tel me which book do u use?Company needs finance for acquiring fixed Assets or business expansion, there are three sources of finance for available for company, first company can use retained earnings (which are accumulated profit for previous years not distributed as dividends), second option is that company can issue new shares which will increase capital and company can purchase assets or expand business, 3rd source is borrowing long term finance from 3rd party (Outside), this borrowing is done through issue of debentures, Debentures are like long term loan for company, company has to pay fixed interest on Debentures issued by company, For instance company issued 10%debenture 100,000, so company will pay 10 % interest every year on these debentures, So u can say debentures are like certificates which shows indebtedness of company & it is Non-current liability for company, I hope u understand, If u have an doubt u can ask... thank u
There r a few pages whch i need to understand so in-case u hv d same book as of mine ..u can help me out if convenient??
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GUys i am starting a revison group for upcoming may june 2015 exams. More details here. https://www.xtremepapers.com/commun...ce-subjects-economics-business-studies.37031/
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C, it's v simple... What u think why company gives dividend when it issues shares to public? simple!!! Company receives money from shareholders for shares which company issued, similarly when company issue debentures company receives money , When u take money from someone u have to pay interest on that, So company issues debentures in return public give them money as a loan on which they have to pay interest unless they don't take their deb. back from public which is called redemption of deb. I hope u understand
I m using harold randall and david hopkin...i seeC, it's v simple... What u think why company gives dividend when it issues shares to public? simple!!! Company receives money from shareholders for shares which company issued, similarly when company issue debentures company receives money , When u take money from someone u have to pay interest on that, So company issues debentures in return public give them money as a loan on which they have to pay interest unless they don't take their deb. back from public which is called redemption of deb. I hope u understand
thanksssM using farquharson
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No problem!!! If u hav any doubt just take a snapshot and post i will try to help u ....i see
M using farquharson
doneNo problem!!! If u hav any doubt just take a snapshot and post i will try to help u ....
Explain the likely conflict btweeen the triple bottom line objectives of a social enterprise operating in your country? M/J'13 8 marks
Help! azaanahsan
Help! azaanahsan
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I don't know business :-(- Messages
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Do you have the Marking scheme for the accounting 2014 winter paper?
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A or As level?
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Hey... I do have all the concepts in mind... totally fine with the concepts in the book your talking bout because that is the book I used for my classes. I just don't know how to approach a particular question. For example... One of the papers asked to create a capital account for 3 partners(1 newly joined) but said that they decided that the goodwill will not be maintained in the books. However, the mark scheme suggests that they were expecting us to record the goodwill amounts. So, basically, I wanted to know if there are any tips or tricks anyone can suggest that I can use in order to understand the questions better.
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check out max papers
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Guys I have a doubt... How exactly do forecast grades matter??? Do they affect your final board evaluation???
But u did tel me about debentures :O lol
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Hello guys. I'm doing A2 business privately. Would really like some good links where i could find online notes. I shall be very thankfull
Regards
Regards