Creation of a competitive enterprise, development and expansion of trade, entering large sales markets are one of the main tasks of entrepreneurial activity. The main means of achieving the set goals, regardless of the organizational and legal form of a legal entity, remains effective management of the material and economic resources of the enterprise, in other words, capital.
Instructions
Step 1
The capital of an organization together is formed by two main components: tangible assets - securities, real estate, cash, materials, manufactured goods, structures, vehicles, equipment, and intangible assets - copyrights, patents for inventions, a trademark.
Step 2
Accounting for an organization involves dividing the capital of an enterprise into two types - active and passive capital. Active capital is all those funds that the company actually owns as a legal entity, expressed and presented in the balance sheet in value terms, and passive are the sources through which the active capital of the company is formed.
Step 3
Passive capital, in turn, consists of equity and borrowed capital, also called debt. It should be noted that it would be erroneous to believe that equity and borrowed capital in the current account and in the balance sheet will somehow be separated from each other. All funds of the enterprise are its own, but the sources of their formation and financing are different.
Step 4
Equity capital reflects a constituent part of the material and financial resources of the organization, which was formed at the time of the formation of the organization by its founders, participants, owners and was formed during the entire period of the enterprise. Equity capital is created at the expense of authorized, additional, reserve capital and retained earnings - if the owners of the company have decided not to withdraw the profit from circulation, but to direct it to the development of production.
Step 5
Debt capital is formed from outside material resources, as a rule, in the form of credit and borrowed funds. Liabilities are divided into long-term (loans and borrowings, the maturity of which is determined after more than 12 months) and short-term liabilities (loans and credits due to be repaid within the next 12 months, for example, liabilities to suppliers and contractors, landlords, the budget and extra-budgetary funds).
Step 6
The percentage of own and borrowed funds is an absolute indicator in assessing the financial stability and management efficiency of an organization. The formula is simple - the more the company's own capital and the less borrowed, the higher the security and stability of the enterprise in any crisis economic situations.
