Online professor's response to: Questions
Not what you're looking for?
1. Georgia Lazenby believes a current liability is a debt that can be expected to be paid in one year. Is Georgia correct? Explain.
2 a. What are long-term liabilities? Give two examples.
b. What is a bond?
3. Contrast these types of bonds:
a. Secured and unsecured.
b. Convertible and callable.
4. Valentin Zukovsky says that liquidity and solvency are the same thing. Is he correct? If not, how do they differ?
Purchase this Solution
Solution Summary
This response defines current liabilities, long-term liabilities, bonds, and compares solvency and liquidity.
Solution Preview
1. Georgia Lazenby is right. Current liabilities are liability that is usually payable within one year. These are very short term liabilities and the amount outstanding is much less than the long term liability. Examples of current liabilities are rent payable, salary outstanding etc.
2a. Long term liabilities are debt obligation of a company with a maturity of more than one year. These liabilities are not due immediately but are due on a future date. Companies generally make provisions every year so that it will be easier for them to pay them when it is due. Examples: Mortgage loan, lease obligations.
b. A Bond means an investor (who has the money) agrees ...
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Introduction to Finance
This quiz test introductory finance topics.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.