0
Additional Capital Contributions to a business does not increase taxes. Increased earnings does.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What are the uses of capital in a business?
Capital is the money used to finance a business, to buy assets, and to operate the business. Businesses need capital to pay rent or buy space for the business, pay employees, buy equipment, supplies, and furniture, pay for professional help, build new plants, develop new products, and upgrade information technology.
Explain how can creative accounting affects the cost of capital and what are the likely implications?
Creative accounting can make financial documents of a business look misleading. Many financial institutions my be hesitant to lend money, which will make the business have to pay more for capital.
What doe startup capital pay for?
operating expenses for the first year of a new business
Why working capital is important and some ratio of working capital?
Working capital is a business's blood as well as the oxygen that gives your business its every breath. In other words, working capital is what keeps your business alive and functioning. Working capital is obviously very important. Have you noticed that your business's cash flow is not as steady as you wish? Has it become difficult to pay for your business's day-to-day expenses? If so, you might be in need of working capital.
Is paid up capital a debit or a credit account?
aid up capital is the amount invested by owners towards business and it is the liability of business to pay back so it is liability of business and as all liability accounts it has also credit balance.
When do you pay Capital gains taxes on the sale of a business?
When you file your income tax return for the year of the sale.
When is right to ask for more pay at a job?
Depends on your area of business. I'd suggest whenever the business your working for is doing well. I mean don't ask for more pay if your business is dead.
What is the difference between share capital and working capital?
Share capital is equity in the company. It is money raised by the company in exchange for issuing ownership of shares. Working capital is the money that is borrowed from a bank for a business to pay operating expenses.
What is the difference between net working capital and operating capital used?
A non-operating working capital is a category for items that cannot be classified anywhere else like amounts due on fixed assets and dividends to be paid. Operating working capital, on the other hand, is a category that represents operating liquidity of a business.
What is the role of profit in business?
Profit in business helps in enhancing the owners capital and helps to invest on other works.By profit he can be able to give salaries or pay his dept
What is purchase order financing?
"In a nutshell, it is a loan taken by a business to pay suppliers before an order for product is fulfilled so as to keep capital in the business at a reasonable level"
What are some small business services from Capital One?
Small business services offered by Capital One include checking and overdraft services, online banking, automatic bill pay, small business loans, fraud and account protection and reward points for shopping at certain stores.
