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PDF Editor FAQ

What is capital budgeting?

Capital Budgeting: Choosing an investment with satisfactory cash flows and rate of return i.e., allocation of company’s funds into long-term investments.For instance, Delhi Metro Rail Corporation buys 10 Metro Rails today for Rs. 100 crore million.Following characteristics make them significant for any organization:-Substantial FundsCapital budgeting decision involve huge outlay of funds; therefore, should be taken after assessing each and every minute detail of the project/ proposal. It also involves an opportunity cost; had this huge amount not invested here,must have been invested elsewhere, yielding decent returns.Long-term ImplicationsIt has long-term consequences and implications. They affect the risk-return composition of the organization for long time, which makes the decision so crucial. If this decision is not taken effectively, the company may have to absorb huge losses.Ability to compete in the marketSuch decisions also affect the company’s ability to face competition. A timely taken capital budgeting decision may lead to monopoly of the company while a delayed decision may endanger the survival of company in the market.Cheers Life :))

Which topics are important for RBI grade B from Prasanna Chandra?

Chapter 4.1 Financial Ratio (Most important)Chapter 6- Time Value of MoneyChapter 7-Valuation of bond and stocks (*read only bonds)Chapter 11-Techniques of Capital budgetingCaution:Need not do PhD in these. Just a basic understanding and knowhow of terminologies will do .RBI is decreasing weightage of numericals and core finance every year. Focus more on theory

How do I prepare for the Group 1 final CA in 30 days?

Financial reporting- 9 daysSFM-8 daysLaw- 5 daysAuditing- 5 daysRevision- 4 days.Financial Reporting Try for 65 marksSFM-55Law and Auditing 40 each (You can adjust as per your knowledge in each subject).Financial Reporting- Skip Ind AS, Last two chapter simple but important. Make sure that you are good at either in Consolidation or amalgamationSFM- Foreign exchange, security valuation, capital budgeting, Portfolio, capital market, mutual fundLaw. companies act 2013, producer company, Competition, FEMA, Security contract ActAuditing- companies Audit, SA, professional ethics, audit report.All the best

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