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Abstract: Self-financing is the basis of any enterprise development. Equity capital is also an essential source of the enterprise. Funding issues are crucial to the survival and development of the enterprise.
First of all, the company must have liquidity to deal with the assumed commitments, that is to honour the due debt in the near future, thus ensuring its short-term financial balance.
Secondly, on the part of the enterprise, it is the issue of launching in any kind of investments that will make the company's possibilities develop. In this case, it is the financing of the medium and long-term development, which conditions the increase of the results in the future and the maintenance of the financial equilibrium.
Keywords: financing, self-financing, net self-financing
Introduction
The enterprise as an economic and financial activity is the permanent headquarters of the relationship between stocks and flows that is reflected in the synthetic accounting documents.
If the balance sheet reflects the financial state of the financial year, the profit and loss account shows the aggregate of the economic flows generating income (as enrichment resources) and expenditures (as resources of impoverishment) during the financial year.
1. Self-financing Capacity
Enterprise performance analysis is based on indicators that support:
A. Data provided by the profit and loss account showing income and expenses on the two business areas: operating and financial.
B. Data provided by interim management balances, which presents the results of the exercise in the profit and loss account as margins on different accruals
C. Data provided by the profit and loss account and the interim management balances
The resources available to the enterprise can be external and internal. Foreign resources may come mainly from capital increases through contributions, investment grants and loans. Internal resources are earned through the enterprise's business, consisting of receipts mainly from sales (and in addition from other income) less expenditure-related payments. [1, 88] (Figure no. 1)
The gross operating surplus is a very useful but partial measure of the internal resources flow generated by the enterprise insofar as it is limited to the flow of exploitation. Self-financing capacity (CAF) seeks to assess the...