It is a leverage which refers to high level of profitability because of high fixed financial expenses. It includes interest on loan and preference dividend. Higher financial leverage indicates higher financial risk as well as higher break points. In this kind the managers have flexibility in choice of capital structure.
List various methods for calculating depreciation?
Explain production unit method to calculate depreciation?
Explain straight line method to calculate depreciation. What are it advantages and limitations?
Explain Written Down Value (Reducing Balance) method to calculate depreciation. What are the benefits of this method?
Do you know What is depreciation? What are the causes of depreciation? Is it a cost? Why?
Explain annuity method of calculating depreciation?
What is the need of depreciation account?
What is the principal of Double Entry system of accounting? What are the advantages of Double Entry system of accounting?
Explain Advantages of Double Entry system of Accounting?
What are the rules of double entry book keeping for various types of accounts?
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