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Yogita Ingle 6 years, 1 month ago
1. Business activities are not possible without finance. Financing is an essential business activity.2. All business enterprises whether large or small need finance.
3. Small sized business enterprises need lesser funds, whereas large sized business houses need more funds.
4. Business finance includes borrowed funds and owned capital.
5. Business finance is a wider term. It is concerned with planning, acquiring, utilizing and managing funds.
Posted by Medha Bhattacharjee 6 years, 1 month ago
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Yogita Ingle 6 years, 1 month ago
1. Finance required for a period more than 5 years is known as long-term finance. According to certain authorities finance for a period exceeding ten years is known as long-term finance.
2. Long-term finance is required for making investment in fixed assets, such as land, building, plant, machinery, vehicles equipments, furniture etc.
3. Long-term finance meets long-term financial needs of the business. These needs are permanent needs of the business.
4. Fixed assets purchased out of long-term finance are revenue generating.
5. Long-term finance once invested in the business cannot be taken back without dissolving the business or scaling down the business.
6. Long-term finance is acquired through issue of shares, debentures or loan from specialized financial institutions.
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Yogita Ingle 6 years, 1 month ago
GAAP stands for Generally Accepted Accounting Principles. These are some commonly followed practices of accounting that have found some level of global acceptance. These accounting principles specify certain definitions, the accounting treatment for confusing entries, and even some industry-specific rules and procedures.
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