Analysing Financing Activities

ANALYZING FINANCING ACTIVITIES How to Analyze Financial Activities of a Company each what a follow do to raise finance for confused direct and otherwise needs be referred to as support activities. Analyzing financial activities is a one of the major analysis comes on a lower floor bill analysis and it helps an analyst to understand the companys finance structure, growth, prospects , risk and so on These financing of a company comes either in form of equity or liabilities (debt). Liabilities Liabilities be financing obligations that require future payment of money, run or other assets. In other words a indebtedness is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. These ar essentially Outsiders claims against company resources. Classification of Liabilities 1. funding and Operating Liabilities Financing liabilities are all forms of credit financing much (prenominal) as hornswoggle and long-term borrowings, bonds, notes, leases etc. Operating liabilities are Obligations that arise from operational(a) activities much(prenominal) as accounts payable, unearned revenue, advance payments, taxes payable, postretirement liabilities, and other accruals of operating expenses etc. 2.

Current and Non Current Liabilities Current liabilities are Obligations whose settlement requires harbinger of flow rate assets or the incurrence of another current liability at bottom one twelvemonth or the operating cycle, whichever is longer. Non current liabilities are Obligations not payable within one year or the operating cycle, whiche ver is longer. Composition of Liabilities ! * Interest bearing borrowings * Leases * retreat turn a profit obligation * Contingencies and commitments Factors to be considered when go liabilities * Term and condition on borrowing * mode of ever-changing each item in certain period, * effects of such changes net profit and other item on the balance wheel sheet...If you want to get a full essay, secern it on our website: OrderEssay.net

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