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3 years ago

____________ is the ability of a company to pay its debts as they mature. Liquidity Solvency Financial flexibility Insolvency

Business

2 answers:

Alex73 [517]3 years ago

6 0

Answer:

The answer is Solvency

Explanation:

Merriam-Webster defines solvency as the state of being able to pay all legal debts.

Solvency therefore, is simply a company's ability to meet debts and financial obligations as they mature. A company's solvency is very important because it indicates whether a company will still be in business in future.

Solvency and Liquidity are similar, but the difference is that liquidity is the ability of a business to quickly convert assets to cash in order to meet immediate business needs, while solvency measures a company's ability to meet debts obligations when due.

A company that is insolvent, meaning 'cannot pay off its debts' will often file for bankruptcy.

pshichka [43]3 years ago

4 0

Answer:

Solvency

Explanation:

Solvency is defined as the ability of a company to meet it's long term financial obligations like having the ability to pay off debts as they mature. Solvency measures if a company is able to pay off it's debt in long term.

Although solvency and liquidity are similar, difference is liquidity is more concerned with paying off short term debts.

A company or firm is said to be solvent when the current assets exceeds current liabilities.

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Short Company purchased land by paying $11,000 cash on the purchase date and agreed to pay $11,000 for each of the next six year

sergeinik [125]

Answer: $‭52,431.5‬0

Explanation:

The liability reported will be the present value of the six payments of $11,000.

Since this is a constant amount, it will be an annuity:

= 11,000 * Present value interest factor of an annuity, 6 years, 7%

= 11,000 * 4.7665

= $‭52,431.5‬0

<em>Any difference between this and any options given is down to rounding errors. Pick the closest figure. </em>

7 0

2 years ago

Janet bought a share of stock for $47.50 that paid a dividend of $.72 and sold one year later for $51.38. What was her dollar pr

LiRa [457]

Answer:

Dollar profit/loss= $4.6

Holding period of return = 9.68%

Explanation:

Janet bought a share of stock for $47.50

Dividend paid is $0.72

The stock was sold later at $51.38

The first step is to calculate the dollar profit/loss

= stock after a year - cost of stock + dividend paid

= $51.38 - $47.50- $0.72

= $4.6

The holding period return can be calculated as follows

= dollar profit/loss ÷ purchasing price of stock

= 4.6/47.50

= 0.0968×100

= 9.68 %

6 0

2 years ago

According to the text, there are four different aspects of a decision that a business should evaluate in order to___ maximize pr

inna [77]

Answer: Legal, public relation, safety risk, financial.

Explanation:

The above are different aspects of a decision in order to maximize profit and be a good corporate citizen.

Financial decision taking with respect to capital structure.

Legal- legal rights and responsibilities.

Safety risk assessment and mitigation of safety risk.

Public relation communication that are strategic that builds mutually beneficial relationships.

3 0

3 years ago

The following totals for the month of June were taken from the payroll records of Seminole Company: Salaries, $100,000 FICA taxe

tekilochka [14]

Answer:

Given that,

Salaries = $100,000

FICA taxes withheld = $7,650

Income taxes withheld = $18,000

Federal unemployment taxes = $450

State unemployment taxes = $2,100

Therefore,

Payroll Tax Expense:

= FICA taxes withheld + Federal unemployment taxes + State unemployment taxes

= $7,650 + $450 + $2,100

= $10,200

The journal entry is as follows:

Payroll Tax Expense A/c Dr. $10,200

To FICA taxes withheld $7,650

To Federal unemployment taxes $450

To State unemployment taxes $2,100

(To record accrual of employer’s payroll taxes)

6 0

3 years ago

To change document properties, first tap or click FILE on the ribbon to open the Properties view.

Alekssandra [29.7K]

What uhhh what is the wuestion

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3 years ago