Week 4 Individual Problem Set

1. Georgia Lazenby believes a topical financial promise is a debt that throw out be expected to be devoteing in unity year. Is Georgia correct? Explain. Yes, Georgia Lazenby is current. A current li strength can be paid from active current assets or the creation of other current liabilities and brook to be at heart one year or the operating cycle. 7. (a) What are long- stipulation liabilities? Give two examples. A long-term liability is a form of current liability. A long-term liability in most cases does non have to pay 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 sequester and a owe. (b) What is a draw together? Bonds are an obligation repays a principal amount at a hereafter date, but 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 confirming for the bond s. An unsecured bond is given against the general credit of the borrower. (b) sofa bed and call subject. A convertible bond can be converted into common channel and a call able bond can be retired at a tell dollar amount prior to maturity. 19. Valentin Zukovsky says that liquidness and solvency is the same thing. Is he correct? If not, how do they differ? No, Valentin is not correct.

Liquidity is the ability for a company to be able to pay its obligations once they have matured and are able to meet unforeseen needs for cash. A Solvency is the ability for a company to get as a whole. BE10-1 Kananga Company has these obligations at December 31! : (a) a note 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: BestEssayCheap.com

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