Please answer “True” or “False” and expain WHY to the following statements. Factoring is a method for companies with high risk accounts receivable to insure the receipt of at least some of the cash owed to them. Leasing is not considered a debt for balance sheet and liquidity purposes. A company with a liquidity covenant of $500,000 must maintain that amount of available cash at all times.

Q: 1b) Banks offer overdraft facilities and term loans, among other services, to their corporate…

A: The answer is stated below:

Q: The two most pressing demands for liquidity from a bank come from, first, customers withdrawing…

A: Liquidity in banking refers to the capacity or the ability of the banks to give cash to customers on…

Q: Which of the following statements is false? A.   Moral hazard is the lack of incentive to guard…

A: Analysis of the options:   A: Moral hazard is the lack of incentive to guard against risk where one…

Q: Customers' current ac bank.

A: Liabilities are accumulated financial obligations that result from past events that are expected to…

Q: The speculative motive is the need to hold cash      O a. To pay outstanding checks       b.…

A: There are many objectives of maintaining cash with company but there are speculation objectives also…

Q: The business holds cash, treasury notes, and corporate bonds. It is exposing itself to interest rate…

A: Since business is exposing itself to interest rate risk, it is ready to bear or accept risk.

Q: Which of the following statements is false?(a) Receivables include equity securities purchased by…

A: Receivables refers to the amounts to be received within a short period from customers upon the sale…

Q: pense and accounts receivable balance. Under different circumstances, another method is used called…

A: When there is only one large accounts receivable due from one client the direct write off method if…

Q: Accounts receivable are an important asset; However, companies that sell in installments must accept…

A: Key references:Bragg, S. M. (2005). The ultimate accountants' reference including GAAP, IRS &…

Q: Which one of the following statements is false? a. Consumer loans are loans banks advance to…

A: Solution:- Loans means the advances made by the bank to the customers, while deposits means the…

Q: Preparing bank reconciliation statement is: Select one: a. Not necessary when a perpetual inventory…

A: Internal control system of an entity is a set of measures that are compiled with a view to prevent…

Q: Hello tutor solve this problem with correct

A: 1 ) The check returned due to insufficient fund is recorded in the company's book by having an…

Q: Any time management makes an estimate, there is the risk of earnings management or fraud. Accounting…

A: Earning Management and Bad debts Earning management is the important department in every company. In…

Q: As a result of the COVID-19 crisis, company A has decided to sell its receivables to a bank in…

A: Solution:- Discussion of the effect of this financial decision on the company's current ratio, quick…

Q: Public companies are required to use the Allowance Method to account for uncollectible Accounts…

A: From an investor's perspective, the Allowance Method is beneficial because it provides a more…

Q: The following questions related to cash disbursements are included in the internal control…

A: Audit assertions or financial statement assertions is an important thing to consider while doing the…