請必須要自信,，你就是一道風景，沒必要在別人風景里面仰視,。ACCA備考需要保持自信心,，即便是全英文考試，也要有相信自己能夠順利通過可能,。

【內(nèi)容導航】

Overtrading 過度貿(mào)易

【知識點】 

Overtrading 過度貿(mào)易

Overtrading 過度貿(mào)易

Over-capitalization and Overtrading

Over-capitalization

If there are excessive inventories, accounts receivable and cash, and very few accounts payable, there will be an over investment by the company in current assets. Working capital will be excessive and the company in this respect will be over-capitalized.

overtrading (also known as under-capitalization)

In contrast with over-capitalization, overtrading happens when a business tries to do too much too quickly with too little long-term capital.

Even if an overtrading business operates at a profit, it could easily run into serious trouble because it is short of cash.

Symptoms of overtrading

There is a rapid increase in sales revenue.

There is a rapid increase in the volume of current assets and possibly also non-current assets. Inventory turnover and accounts receivable turnover might slow down, in which case the rate of increase in inventories and accounts receivable would be even greater than the rate of increase in sales.

There is only a small increase in equity capital (perhaps through retained profits). Most of the increase in assets is financed by credit, especially:

Trade accounts payable-the payment period to accounts payable is likely to lengthen.

A bank overdraft, which often reaches or even exceeds the limit of the facilities agreed by the bank.

Some debt ratios and liquidity ratios alter dramatically.

The proportion of total assets financed by proprietors' (owner) capital falls, and the proportion financed by credit rises.

The current ratio and the quick ratio fall.

The business might have a liquid deficit; that is, an excess of current liabilities over current assets.

Causes of overtrading

A business seeking to increase its revenue too rapidly without an adequate capital base.

When a business repays a loan, it often replaces the old loan with a new one (refinancing). However a business might repay a loan without replacing it, with the consequence that it has less long-term capital to finance its current level of operations.

A business might be profitable, but in a period of inflation, its retained profits might be insufficient to pay for replacement non-current assets and inventories, which now cost more because of inflation.

Suitable solutions to reduce the degree of overtrading.

New capital from the shareholders could be injected.

Better control could be applied to inventories and accounts receivable. The company could abandon ambitious plans for increased sales and more non-current asset purchases.

不要放棄,，你要配的上自己的野心，也不要辜負了所受的苦難,。不放棄就有通過ACCA考試的可能，所以認準了備考ACCA這條路,，你就要走下去,，不可半途而廢。

注：以上內(nèi)容來自Echo老師基礎班第9講

(本文為東奧會計在線原創(chuàng)文章,，僅供考生學習使用,，禁止任何形式的轉載)