241 Under capitalization : When a business is able to earn fair rate
or over rate on it is outstanding securities.
242 Capital gearing : The term capital gearing refers to the
relationship between equity and long term debt.
243 Cost of capital : It means the minimum rate of return expected by
its investment.
244 Cash dividend : The payment of dividend in cash
245 Define the term accrual : Recognition of revenues and costs as they
are earned or incurred . it includes recognition of transaction relating to
assets and liabilities as they occur irrespective of the actual receipts or
payments.
245 accrued expenses : An expense which has been incurred in an
accounting period but for which no enforceable claim has become due in what
period against the enterprises.
246 Accrued revenue : Revenue which has been earned is an earned is an
accounting period but in respect of which no enforceable claim has become due
to in that period by the enterprise.
247 Accrued liability : A developing but not yet enforceable claim by
an another person which accumulates with the passage of time or the receipt of
service or otherwise. it may rise from the purchase of services which at the
date of accounting have been only partly performed and are not yet billable.
248 Convention of Full
disclosure : According to this convention, all accounting statements should be
honestly prepared and to that end full disclosure of all significant
information will be made.
249 Convention of
consistency : According to this convention it is essential that accounting
practices and methods remain unchanged from one year to another.
250 Define the term
preliminary expenses : Expenditure relating to the formation of an enterprise.
There include legal accounting and share issue expenses incurred for formation
of the enterprise.
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