Week 4 Individual Problem Set

1. gallium Lazenby believes a original financial promise is a debt that throw out be expected to be nonre foundingal in unity year. Is Georgia correct? Explain. Yes, Georgia Lazenby is authoritative. A current obligation derriere be paid from live current assets or the creation of other current liabilities and run through to be at watch whiz year or the operating cycle. 7. (a) What ar coherent- obligation liabilities? Give two manakins. A long-term lipower is a form of current li efficacy. A long-term liability in most cases does non create to put up within a one year term. An example would be a lend with interest. An example of a long-term liability would be that of a recede and a owe. (b) What is a bail bond? Bonds are an obligation repays a principal amount at a hereafter date, moreover pay interest on an annual basis. 8. seam these types of bonds: (a) Secured and unsecured. Secured bonds have particular assets of the issuer promised as verificatory for the bonds. An unsecured bond is given(p) against the general credit of the borrower. (b) similar and call subject. A convertible bond can be converted into common channelize and a call able bond can be retired at a verbalise dollar amount foregoing to maturity. 19. Valentin Zukovsky says that liquidness and solvency is the same thing. Is he correct? If not, how do they take issue? No, Valentin is not correct.

Liquidity is the ability for a company to be able to pay its obligations at one time they have matured and are able to meet out of the blue(predicate) needs for cash. A Solvency is the ability for a company to pull round as a whole. BE10-1 Kananga caller-out has these obligations at December 31: (a) a note account payable for $100,000 imputable in 2 years Yes, this is a long term liability. (b) a 10-year mortgage payable of $200,000 payable in decennium $20,000 annual payments No, this would be considered a liquidity. (c) interest payable of $15,000 on the mortgage No, this would be a current liability. (d) accounts payable of $60,000. Yes, this would be a current liability. For...If you want to get a integral essay, order it on our website: Ordercustompaper.com

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