Difference between EBITDA and cash flow from operation?
The main difference between EBITDA and cash flow from operation is working capital changes and taxes. In EBITDA, it is before tax and in cash flow from operations, it is…
What is related party as per various laws? – Companies Act, Ind AS, GST, Income Tax
As per 2(76) of Companies Act: a. a director or his relative; b. a key managerial personnel or his relative; c. a firm, in which a director, manager or his…
What is payback period and discounted payback period?
The payback period is the length of time required to recover the cost of an investment. The payback period of a given investment or project is an important determinant of…
Meaning and formula of WACC
WACC – Weighted Average cost of capital - (E/E+D)*Ke + [D(1-t)/E+D]*Kd E – Market Value of Equity D – Market Value of Debt Ke – Cost of equity Kd –…
What do you mean by EBITDA?
A. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's financial performance that excludes certain non-cash expenses, such as interest, taxes, depreciation,…
What are substantive Audit Procedures?
Substantive procedure may be defined as an audit procedure designed to detect material misstatements at the assertion level. Substantive procedures comprise: (i) Tests of details (of classes of transactions, account…
Components of cash flows Statement
▪ Cash flow resulting from operating activities.▪ Cash flow resulting from investing activities. ▪ Cash flow resulting from financing activities.