28 September 2007
How does a company determine the amount of money in excess of its wants? Is it by computing the money remaining idle?If so how is that computed?
29 September 2007
The matter to beproved is not that the money, but that the capital is in excess of the requirement. If the Company can borrow the money upon better terms, the capital may be in excess of the amount it wants as it preferable to borrow it. Therefore, it is not based on the money remaining idle or money required by the company to employ it in the business.
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