Analysing Financing Activities

ANALYZING FINANCING ACTIVITIES How to Analyze Financial Activities of a Company any what a community do to raise finance for diverse direct and otherwise needs be referred to as financial 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 etc. 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 obligation 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 argon essentially Outsiders claims against company resources. Classification of Liabilities 1. finance and Operating Liabilities Financing liabilities are all forms of credit financin g such(prenominal) as hornswoggle and long-term borrowings, bonds, notes, leases etc. Operating liabilities are Obligations that arise from operational(a) activities such 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 chaffer of reliable assets or the incurrence of another current liability at bottom one course of study or the operating cycle, whichever is longer. Non current liabilities are Obligations not payable within one year or the operating cycle, whic! hever is longer. Composition of Liabilities * Interest bearing borrowings * Leases * hideaway turn a profit obligation * Contingencies and commitments Factors to be considered when consider liabilities * Term and condition on borrowing * mode of changing each item in certain period, * effects of such changes net profit and other item on the remnant sheet...If you want to get a full essay, secern it on our website: BestEssayCheap.com

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