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What is a asset utilization ratio?
Sales over Operating assets /which are long term +working capital/
Is gross working capital refers to the company's investment in current assets?
Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital
Explain why net assets has the same value as capital employed?
Net assets and capital employed represent the same value because both measure the total resources available for a business to generate profits. Net assets are calculated as total assets minus total liabilities, reflecting the equity portion available to shareholders. Capital employed, on the other hand, is defined as total assets minus current liabilities, which effectively captures the long-term funds utilized in the business. Since both concepts ultimately track the same underlying financial resources, they yield equivalent values.
What are primary assets?
capital
Why Liability equals Assets - Owners Equity?
Because Assets equal to Liabilities plus Capital: ASSETS= LIABILITIES + CAPITAL This is a Mathematical equation, try to figure it out by your own.
What is capital utilization?
Capital utilization refers to the efficiency of using physical assets, such as equipment and machinery, to produce goods and services. It is a measure of how fully a company is utilizing its resources to generate revenue. High capital utilization indicates that a company is efficiently using its assets, while low capital utilization suggests underutilization and potential inefficiencies.
What is a asset utilization ratio?
Sales over Operating assets /which are long term +working capital/
What assets utilization?
How do I compute Asset Utilization ratio
This factor of production is represented as interest earned on investments?
The factor of production represented as interest earned on investments is capital. Capital refers to the financial assets or resources that are utilized to generate income and facilitate production. Interest is the return earned on these financial assets when they are invested, reflecting the opportunity cost of using the capital for investment purposes rather than for consumption.
Balance sheet is a statement of assets and liabilities or sources and uses of capital or both-explain?
A balance sheet is a financial statement that presents a company's assets, liabilities, and equity at a specific point in time. It illustrates the sources of capital (liabilities and equity) and how those funds are utilized (assets). Essentially, it reflects the accounting equation: Assets = Liabilities + Equity, showcasing the relationship between what a company owns and what it owes. Thus, it serves as a snapshot of the company's financial position, detailing both sources and uses of capital.
Is gross working capital refers to the company's investment in current assets?
Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital
Capital Employed is equal to?
Capital Employed = Fixed assets + current assets - current Liabilities
What is objective of assets?
Objective of assets is to utilized them for earning revenue for business like plant and machinery etc.
Explain why net assets has the same value as capital employed?
Net assets and capital employed represent the same value because both measure the total resources available for a business to generate profits. Net assets are calculated as total assets minus total liabilities, reflecting the equity portion available to shareholders. Capital employed, on the other hand, is defined as total assets minus current liabilities, which effectively captures the long-term funds utilized in the business. Since both concepts ultimately track the same underlying financial resources, they yield equivalent values.
What is capital in terms of business?
Assets that you own are your capital.
What are primary assets?
capital
What are fiscal assets?
Fiscal assets are the capital revenue for the formulated budget.
