For each case of financial assets that are not related to one another, explain along with the business model reasons for each of the following financial assets: 1.) PT Amanda has financial assets with the aim of meeting the day-to-day liquidity needs of the entity and fulfilling that objective involves repeated sales of significant value. 2) PT Merdu anticipates capital expenditures in the next few years. For this reason, PT Merdu invests its excess cash in short-term and long-term financial assets so that it can fund these capital expenditures when needed. If there is an opportunity to get a higher yield, PT Merdu will sell the financial asset. 3.) PT Permakultur has a business activity of buying a portfolio of financial assets in the form of loans. If the loan repayments are not made on time, PT Permakultur will make various efforts to obtain contractual cash flow, including by contacting the debtor by letter, telephone, and other methods.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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For each case of financial assets that are not related to one another, explain along with the business model reasons for each of the following financial assets:

1.) PT Amanda has financial assets with the aim of meeting the day-to-day liquidity needs of the entity and fulfilling that objective involves repeated sales of significant value.

2) PT Merdu anticipates capital expenditures in the next few years. For this reason, PT Merdu invests its excess cash in short-term and long-term financial assets so that it can fund these capital expenditures when needed. If there is an opportunity to get a higher yield, PT Merdu will sell the financial asset.

3.) PT Permakultur has a business activity of buying a portfolio of financial assets in the form of loans. If the loan repayments are not made on time, PT Permakultur will make various efforts to obtain contractual cash flow, including by contacting the debtor by letter, telephone, and other methods.

 

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