Get premium membership and access questions with answers, video lessons as well as revision papers.
The Main basic factors that require to be taken into account in selecting the best method of financing a plant expansion are explained below:
a) Cost of finance
The cost of finance is an Important factor in the choice of source of finance. The cost of finance should be less than the expected return from the project for which the finance is required
b) Availability of finance
A business finance should be easily available to be a preference for an enterprise
c) Flexibility
A business enterprise will prefer to use that source of finance which is more flexible. It means that a company can use a particular source of finance if the need arises and the repay the money when it's not needed anymore.
(d) Mode of repayment
A business enterprise will prefer that mode of finance which allows the repayment of the principal and interest in easy and convenient instalments.
Charles W answered the question on December 27, 2017 at 13:44
- In reference to the stock exchange explain the meaning of (a) Bear market (b) Bid price (c) Dividend yield (d) Going public (Solved)
In reference to the stock exchange, explain the meaning of
a. Bear market
b. Bid price
c. Divided yield
d. Going public
Date posted: December 27, 2017. Answers (1)
- Explain any four roles of stock exchange in an economy(Solved)
Explain any four roles of stock exchange in an economy.
Date posted: December 27, 2017. Answers (1)
- What are the differences between Insurance and Hedging?(Solved)
What are the differences between Insurance and Hedging?
Date posted: December 17, 2017. Answers (1)
- List two ways in which a business firm ensures that customer payments are converted into spendable form.(Solved)
List two ways in which a business firm ensures that customer payments are converted into spendable form.
Date posted: December 4, 2017. Answers (1)
- Give the basic strategies that should be employed by a business firm in managing its cash.(Solved)
Give the basic strategies that should be employed by a business firm in managing its cash.
Date posted: December 4, 2017. Answers (1)
- Write brief notes on( i) Hire purchase (ii) Credit sale (iii) Effects of goods repossessed on hire purchase transactions(Solved)
a) Write brief notes on
i) Hire purchase
ii) Credit sale
iii) Effects of goods repossessed on hire purchase transactions
b) Fiona Limited bought Motor Vehicle on hire purchase terms. The transactions involved
the following:
i) The cash price Sh.800,000
ii) Hire purchase interest 25%
iii) Deposit 20% of cash price
iv) 5 annual equal installments.
The purchase was effected on 1st January 2015.All payments were made. Depreciation is at a rate of 10% per annum on straight line.
Required:
Asset account (3marks)
Hire purchase company account (4 marks)
Hire purchase interest account (3marks)
C In relation to investment accounting , distinguish the following terms
i) Cum – dividend and Ex – dividend (2 Marks)
ii) Bonus issue and Rights issue (2Marks)
d) ABC Ltd bought sh. 60,000, 10% loan stock of Expo ltd on 1st March 2008 at 90 cum- interest. Interest is payable half yearly on 30th June and 31st December.
Required:
Show the entries in ABC Ltd’s ledger for the year ended 31st December 2008. Ignore income tax. (6 Marks)
Date posted: November 24, 2017. Answers (1)
- Explain how a business can deal with various risks.(Solved)
Explain how a business can deal with various risks.
Date posted: November 14, 2017. Answers (1)
- State and explain examples of marketing and sales risk.(Solved)
State and explain examples of marketing and sales risk.
Date posted: November 14, 2017. Answers (1)
- State and explain examples of financial risk.(Solved)
State and explain examples of financial risk.
Date posted: November 14, 2017. Answers (1)
- State and explain examples of strategic risks.(Solved)
State and explain examples of strategic risks.
Date posted: November 14, 2017. Answers (1)
- Explain the factors an auditor should consider when determining the adequacy of a client’s internal control system
(Solved)
Explain the factors an auditor should consider when determining the adequacy of a client’s internal control system
Date posted: October 31, 2017. Answers (1)
- What is ledger?(Solved)
What is ledger?
Date posted: October 30, 2017. Answers (1)
- What is contained in partnership deed?(Solved)
What is contained in partnership deed?
Date posted: October 28, 2017. Answers (1)
- State and explain the concepts and principles of accounting(Solved)
State and explain the concepts and principles of accounting
Date posted: October 27, 2017. Answers (1)
- State and explain the principles of financial accounting(Solved)
State and explain the principles of financial accounting
Date posted: October 27, 2017. Answers (1)
- Explain the following (a)concept of residence for Incorporated entities (b)deductions allowed against rental income(Solved)
Explain the following (a)concept of residence for Incorporated entities (b)deductions allowed against rental income
Date posted: October 26, 2017. Answers (1)
- Distinguish between regressive and degressive taxes(Solved)
Distinguish between regressive and degressive taxes
Date posted: October 26, 2017. Answers (1)
- Explain the term TAXABLE LIMIT as used in taxation (Solved)
Taxation
Theory of taxation
Date posted: October 26, 2017. Answers (1)
- Ways on how tax policy can be used to promote the growth of small and medium Enterprises (SMEs)(Solved)
Taxation
Date posted: October 26, 2017. Answers (1)
- Outline the characteristics of preference shares(Solved)
Outline the characteristics of preference shares
Date posted: October 26, 2017. Answers (1)