The Dividend Policy in Business:- The dividend decision is one of three major corporate finance decisions, such as investment selection – choice of financing – dividend decision. Dividends result from a decision of the ordinary general meeting of shareholders (AGM) and are not mandatory. Therefore, they do not appear in charge but as a reduction in reserves on the balance sheet.
Archives for January 2018
Equity Financing in Business:- Large groups of companies have been issuing perpetual bond issues in recent times. As regards debts, the traditional reflex suggests that these issued securities are part of the liabilities on the liabilities side of the balance sheet and that the interest paid is recorded as a charge in the income statement.
Practice the Financial Analysis of Association:- The accounts of the associations have certain peculiarities which must be controlled. They carry out very diverse activities: humanitarian, cultural, cultural, sports, social, political and environmental. The voluntary sector is particularly dynamic. France has 1.2 million associations representing 60 billion funds managed. The economic activity of the associations represents about 4% of the national GDP. Some associations represent a considerable economic weight, for example the Red Cross, the AFPA, the League against Cancer.
Evaluate Profitability in Business:- The presentation of the profit and loss account differs according to whether one is in French format of the individual accounts or in Anglo-Saxon format. Individual accounts under French standards impose a detailed classification of expenses by nature (consumption, wages, depreciation, etc.).
Cash analysis is an essential part of the financial analysis. As cash flow is the result of all flows, its degradation is a symptom of a malfunction that needs to be diagnosed. In addition, a continuous deterioration of the cash flow will eventually result in the cessation of payments that the credit analyst tries to anticipate the occurrence by its analysis. Let’s see how to ensure that the balance sheet reflects the true cash position, and what to do if the rate is abnormally high.