The characteristic shared by all liabilities is that they: Multiple Choice O obligate the company to do something in the future. O always end in the word "payable." O result in an inflow of resources to the company. O provide a future economic benefit.

Q: c) Does every loan, which consists of an initial outlay followed by a sequence of re- ceipts, have a…

A: A loan can be defined as the financial support received from the lender by the borrower. In…

Q: Describe the process to compare a set of mutually exclusive investments with unequal service lives?

A: Companies always face a dilemma when it takes into consideration various projects that are mutually…

Q: Multiple Choice Are revenues. Increase income. Are liabilities. Are not allowed under GAAP. Require…

A: When a company receives money in advance of earning it, the accounting entry is a debit to the asset…

Q: In a realization account profit arises if: Assets are realized at less than the book value and/or…

A: Realization means the amount that has been received from sale of the assets of the company due to…

Q: eates additional expense without enough benefit through codt savings, income or capital gain, them…

A: Companies use debt in the capital structure because interest on debt is tax deductible and reduces…

Q: If debt creates additional expense without enough benefit through cost savings, income or capital…

A: We know that Debt is the cheaper source of finance, because in income tax interest on debts is…

Q: The ability to meet short-term obligations is termed: A) Profitability B) Solvency C) Efficiency D)…

A: Introduction: Short term period: Short term period means less than one year period.

Q: Under what circumstances might a salary or bonus be more appropriate than interest on capital…

A: Partnership: The form of business entity which is formed by an agreement, owned and managed mutually…

Q: Why is the cost of financing with a sale-leaseback essentially the same as the return from…

A: Introduction: Financing costs are nothing but the interest and other costs that the company incurred…

Q: Liquidity

A: A firm’s liquidity position plays a very important role in ensuring its survival in the market.

Q: Which statement is true? * General borrowings may earn investment income deductible against general…

A: Business may borrow funds for the purpose of business. These borrowings can be general borrowings or…

Q: oncept of capital maintenan -defines the level of profitabil

A: Capital maintenance: It is an accounting principle that says that a business should recognize its…

Q: Which of the following is an example of passive income?  (a) Cancellation of debt income.  (b)…

A: Answer -    Passive Income means earnings with minimal labor or less effort or fewer resources that…

Q: True or False.

A: Financial goals help people save money at the time of retirement. It includes the Specific,…

Q: 5. explain what the benefits of escrow for both the borrower and the lender may be? Do disadvantages…

A: When you make big investment or purchase property in the market than there is need of third party…

Q: s a loan is paid down the homeowner aspires to having a market value which is more than the price…

A: Loans are paid by the monthly payments that carry the payment for interest and payment for mortgage…

Q: Explain how the following financial products accommodate financial life cycle: a) insurance products…

A: Financial life cycle is a life cycle of an individual where an individual needs to accumulate,…

Q: Match term to the correct definition.  The balance on which interest is paid.…

A: Definition with their correct matches and explanations are provided as below:   Definition…

Q: Which statement is true about credits?      Credits always increase the net worth of a company.…

A: Introduction: A credit, frequently abbreviated CR, is an accounting word for an entry made on the…

Q: Positive covenants specify actions a borrowing company must take as part of the indenture. These…

A: The statement is False. Positive covenants, part of a loan's terms, do require the borrower to…

Q: What are the two essential indicators of a business's ability to pay its long-term liabilities?

A: Long-term liabilities:   Long-term liabilities are obligations that the company needs to pay after…

Q: Modes of extinguishing obligations when creditor abandons his right to collect.

A: You have asked four different multiple choice question and as our guidelines are concerned we…

Q: 1. changing market interest rates will change the market value of assets change the market value of…

A: A change in interest rate in the economy has a major impact on the balance sheet of the firm and…

Q: Prepaid Rent is always classified as a long-term asset. O True O False

A: Prepaid rent is when a tenant pays rent in advance, typically for a future month, and it's recorded…

Q: Discuss how Floating and Fixed debentures affects the profitability of a business?

A: In floating debentures the interest rate of such debentures change will the level of changes... Such…

Q: a company can take advantage of long term de

A: Diversifies Capital Portfolio – semi permanent funding provides bigger flexibility and resources to…

Q: True or False: When a company borrows money to finance the purchase of an asset to use in its…

A: Every organization's wants to achieve that much earing so that they can save amount after paying its…

Q: Strong) (a. investment banking   b. an insurance firm c. commercial banking  d. mutual fund ) is a…

A: Step 1 Commercial banking which is otherwise called business banking or institutional banking under…

Q: Can you tell whether a business can or cannot meet its obligations when it becomes due based on the…

A: Balance sheet refers to the financial statement of a company which includes asset ,liability, debt ,…

Q: Explain why the value of an asset is its current market value and not what you paid for it? Why is…

A: There are two methods for valuing anything. The first method is the historical cost method.…

Q: Finance in classical economics studies all of the following issues EXCEPT Time value of money…

A: Finance in calssical studies all the following: time value of money, equilibrium price risk, asset/…

Q: An investor concerned whether a company can meet its near-term obligations is most likelyto…

A: Introduction: This question is related to the concept of ratio analysis. Ratio analysis is used to…

Q: T F Long-term financing is generally used to opennew businesses.

A: Long-term financing refers to procuring debt for longer durations. It is generally undertaken where…

Q: The Free Enterprise system is also known as a money market O market economic system O cash advance…

A: The free market, generally known as capitalism, is a supply-and-demand economic system. The…