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What is a positive return on capital?
A positive return on capital is a profit. When the sales of a product are greater than the cost of producing the product, the company will make a profit.
What is share capital and how raising share capital?
Share capital is the investment in company from public to earn profit and it can be raised by offering shares to public for purchase.
How find net profit in business?
Net Profit is placed in the Credit Side of the Profit & Loss A/c. of the Company and added to the Capital in the Asset Side of the Balance Sheet.
What is an example of capital production?
Capital of goods is the resources that are available to produce the goods. An example of capital production is the ownership of a moving truck that is used for profit by a moving company. The moving truck is the capital used for the production.
Is USAA a non-profit company?
No, USAA is not a non-profit company. It is a financial services company that operates as a for-profit organization.
Difference between equity capital and preferrence capital?
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
Can a company increase its share capital with its own profit?
No
Why net profit is disclosed on liabili ty side of balance sheet?
because profit is earned on the capital invested which is not the company's money. capital is also like a liability and the profit should actually be given to the owner and the money is still there with the company so it is again a liab. for the company to pay the profit which is a return on the capital invested by the owner.
What are the difference between equity share capital and preference shares capital and examples?
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
What is a positive return on capital?
A positive return on capital is a profit. When the sales of a product are greater than the cost of producing the product, the company will make a profit.
What is equily profit?
Equity profit is the money that a company earns from using external capital in its business operations.
Why are shares issued at a premium?
Well the company wants to profit. And issuing shares at premium provides capital to the company without changing its equity capital.
Why unrealized profit deducted from finished goods?
Unrealized profit is deducted because it is received but not yet earned means goods are not sold to outside customers and unless goods sold to end user or outside company customers, profit is not actually earned.
What is share capital and how raising share capital?
Share capital is the investment in company from public to earn profit and it can be raised by offering shares to public for purchase.
Is profit maximization is good or bad for society?
Profit maximization can be both good or bad. Done correctly, profit maximization helps the company provide great products and services for customers.
How find net profit in business?
Net Profit is placed in the Credit Side of the Profit & Loss A/c. of the Company and added to the Capital in the Asset Side of the Balance Sheet.
Difference between retained earnings and paid in capital?
Paid in capital is that amount which investor invest in company while retained earning is that portion of profit which is not distributed to shareholders of company.
