Journalizing is the process of recoding business transactions in the Journal in chronological order, as and when the transactions take place. Journal is also known as Book of Original Entry or the Book of Prime Entry.
Journal has following five columns:
-Date
-Particulars
-Ledger Folio
-Amount Debited
-Amount Credited
What does financial leverage indicate? What are its limitations?
Explain High operating leverage, high financial leverage?
What does high/ low financial leverage indicate?
Explain Financial Leverage. How is it calculated? What does high/ low financial leverage indicate?
What is Modigliani- Miller (M and M) approach?
Name the theories of capital structure?
Explain Net income approach. Who proposed this theory?
What is capital structure? What are the principles of capital structure management?
What is combined leverage? How is it calculated?
Explain Operating income approach. Who proposed this theory?
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