Accounting is a language of business through which normally a business communicates with the outside world. In order to make this language intelligible and commonly understood by all, a massive number of concepts are being used. This Concept Book covers a wide area of Accounting in a logical sequence for ease of understanding of any reader. 2.0 Separate Entity Concept In accounting, business is considered to be a separate entity from the owners. It may appear to be ridiculous that one person ...
Easyjet is a U.K based low-cost airline offering services on 500 routes between 118 European, West Asian and North African airports using fleet size of 182 aircrafts. Unlike its biggest competitor Raynair, Easyjet uses primary airports to operate its services in off-peak time to avoid high airport fees. In 2007/08, despite the economic downturn and high fuel prices the company managed to increase its revenue as compared to last year with an increase load factor of about 85%. However the compa...
INTRODUCTION TO TOPIC On 17th August, 2006 in CHINA, the following news [1] was released by the Shanghai stock exchange (SSE): The SHANGHAI STOCK EXCHANGE (SSE) and CHINA SECURITIES INDEX CO., Ltd. (CSI) announced on December 19, 2007 the construction scheme of SSE Corporate Governance Index [2] The Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. here by announce that the SSE 180 Corporate Governance Index, a new investment target for investors, will be launched on Septembe...
Portfolio Analysis has been in existence since 1952. Extensive research has been carried out on the portfolio theory but the implementation has been minimal. Due to the "inputs" required the implementation of Portfolio Analysis has been less. Optimum portfolios can be achieved if accurate data if data is available regarding expected future mean returns, the variances of the returns and the correlation of returns. The problem lies with obtaining the accurate data, particularly with respect to ...
The current ratio measures the liquidity of the firm for the purpose of making an analysis of its short term financial position and to determine the ability of the firm in meeting its short term financial obligations. Acid-Test Ratio: The acid test ratio is the alternate to measure liquidity of the firm. This does not include Inventories and Prepaid Expenses in current assets to avoid uncertain liquidity values. Inventory Turnover Ratio: This ratio determines the firm's ability to manage its ...
The current assets are increased by RM 369,558,000 and the current liabilities are increased by RM 182,476,000 from year 2009 to year 2010. Thus, Digi Bhd has more cash liquidity for year 2012 than year 2011. Current ratio is to test a company's liquidity. Current ratio is ascertained whether a company's short-term assets are readily available to pay off the short-term liabilities. Therefore, in theory, the higher the current ratio is better for the company. Total Asset Turnover (TAT) Total a...
The entities which are operating in more than one country are called Multinational Corporations. The typical Multinational Corporation functions with a headquarter in one country while other facilities are based in other countries. Multinational Corporation is also referred to transnational corporation. The model of the Multinational Corporation may vary but its simplest form is one that is headquarter in one country and its working units in other countries. Its main reason is that companies ...
After independence of Malaysia in 1957 from the British, Malaysia have changing the monetary system and established a new monetary policy. Since the established of the Central Bank in 1959, the objective of monetary policy in Malaysia has been adjusted. The financial infrastructure and control inflationary are the target of the management. Before that, the role of monetary policy just a complementarily to fiscal policy but today its roles are more demanding especially after monetary reforms w...
Due to the increasing volatility of interest rates in present society, bank managers become more concerned about the exposure to interest rate risk (Mishkin and Eakins 2009). Recent market volatility provides motivation for bank managers to consider interest rate risk management strategy carefully (Richie, Mautz and Sackley 2010). It will cause the fail for a business if interest rate risk did not be managed properly (Hemert 2010). Therefore, it is crucial to minimize the risk which is create...
A lot of research has already been conducted in the field of identifying the best determinants of Corporate Borrowing by various researchers. Most of the research work suggested that the corporate borrowing vary from company to company and similarly from decision factor to factor. Barclay and Smith (1995) showed that credit quality and size moderately effect on firm's to augment its debts term to maturity, and firm's debt falls with growth opportunities. In a related article, Stohs and Mauer ...
