Question

Rohit has decided to start insulated water bottled manufacturing unit. He discusses the need of funds required to set up the unit with his friend, who is a Chartered Accountant. His friend suggested him to divide the financial needs into two parts. First one to set up the business and secondly to meet day to day expenses. (a) What are the two categories of financial needs of business referred here? (b) Explain the meaning of the concepts identified in (a) part.

Answer 1

Unbilled outstanding is the amount you have purchased before the credit card bill generation date. For instance, your bill generation date is 20th ofevery month and you have maximumof 45 days of interest free repayment period. You will be paying your bills on or before due date of 4th of every month.