Cash coverage of growth, A financial analysis tools that measures the need for financing.

Cash coverage of growth

A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities section. A low ratio indicates a need of additional financing for more growth. A high ratio indi- cates that cash-flows are adequate, but it can also be suggested that opportunities for growth are limited.

View Complete Question

Related Questions in Managerial Accounting

Q : Techniques to liberate the function of

Write down the different techniques employed to liberate the function of management accounting?

Q : Explain Cost Allocation Cost Allocation

Cost Allocation: This is a technique of assigning costs to activities, outputs, or other cost objects. The allocation base employed to assign a cost to objects is not essentially the cause of the cost. For illustration, assigning the

Q : Annual report A company's annual report

A company's annual report is the single most important way for it to convey itself to potential investors. As such, it should be no surprise tha

Q : What is a Product Product : Any

Product: Any traceable, discrete, or measurable good or service given to a customer. Frequently goods are termed to as tangible products, and services are termed to as intangible products. A good or service is the product result of a procedure resulta

Q : Changing responsibilities of the

Write a short note on the changing responsibilities of the management accountant?

Q : What is Service What do you mean by

What do you mean by Service: It is an intangible product or task rendered directly to a client or customer.

Q : Features of partnership Write some main

Write some main features of partnership? Answer: Essential elements or major features of Partnership are as follows: A) Two or m

Q : Define Partnership Accounting

Partnership Accounting: A business can be a firm, a partnership, or a solitary proprietorship. The corporation is incorporated at state level. The sole proprietorship is one person in business. A partnership is two or more than two persons with an agr

Q : Features of the management accounting

What are the various features of the management accounting information system?

Q : Define Job Costing Job Costing : It is

Job Costing: It is an order-specific costing method, utilized in situations where each job is distinct and is executed to the customer's specifications. Job costing includes keeping an account of direct and in-direct costs.

Discover Q & A

Leading Solution Library

Avail More Than 1451260 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1955845
Asked

3,689

Active Tutors

1451260

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment