81. Capital budgeting:
capital budgeting involves the process of decision making with regard to
investment in fixed assets. Or decision making with regard to investment of
money in long term projects.
82. Pay back period: payback period represents the time period required
for complete recovery of the initial investment in the project.
83. ARR: accounting or average rate
of return means the average annual yield on the project.
84. NPV: the net
present value of an investment proposal is defined as the sum of the present
values of all future cash in flows less the sum of the present values of all
cash out flows associated with the proposal.
85. Profitability index: where
different investment proposal each involving different initial investments and
cash inflows are to be compared.
86. IRR: internal rate of return is
the rate at which the sum total of discounted cash inflows equals the
discounted cash out flow.
87. Treasury management: it means it is defined as the efficient
management of liquidity and financial risk in business.
88. Concentration banking: it
means identify locations or places where customers are placed and open a local
bank a/c in each of these locations and open local collection centre.
89. Marketable securities:
surplus cash can be invested in short term instruments in order to earn
interest.
90. Ageing schedule: in a ageing schedule the
receivables are classified according to their age.
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