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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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Identify a few examples of incentives that someone might encounter in his or her daily life. Instructions: In order to receive f

spin [16.1K]

Answer:

Receiving five cents for recycling glass bottles
Parking fines for illegal parking
Tax breaks for 401(k) retirement contributions checked

Explanation:

Recycling is good for the environment and also means companies spending less because they wouldn't have to reproduce the recycle material from scratch. Paying a person money for recycling the glass bottles is an incentive that is meant to encourage them to do it more.

Not all incentives are positive however. Some are negative and aimed at reducing a behavior. Fining people for illegal parking is an example as the logic is that the offending party will think of the fines the next time they want to park illegally and refrain from it.

Offering tax breaks to a person in order to get them to save is an incentive because they are being offered to keep more of their money if they save more.

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3 years ago

A firm's financial statements are generally assumed to include its income statement and balance sheet. Which of the following pi

stellarik [79]

Answer: Liabilities

Explanation: The Balance sheet which is also known as the statement of financial position represent or shows an entity financial position at a single point in time. That is, it shows the Owners equity(capital), Liabilities and Assets of a firm for a financial period, usually a year.

On the other hand, the income statement shows and entity profitability over a period of time

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3 years ago

A manager should attempt to maximize the value of the firm by changing the capital structure if and only if the value of the fir

faust18 [17]

Answer:

Option a

Explanation:

In simple words, value maximization refers to the process under which the managers of an organisation tries to make or increase the existing economic profits, that is, the money left with the organisation after paying for the obligations of all the money providers including the lat in hierarchy, the equity shareholders.

Value maximization can be performed by changing the capital structure which affects the payment obligations. The value maximization affects all the stakeholders of the organisation therefore, the decision should be made by tasking into consideration them all.

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3 years ago

Unscheduled absenteeism has climbed to its highest levels in XYZ Company last month. Inorder to reduce the costs associated with

____ [38]

Answer:

A) integrated paid time off

Explanation:

Integrated paid time off (PTO) is a policy employed by many organizations where all paid time off benefits are combined into one, equaling a total of the paid days off for holidays, vacation, sick leave, and personal days the employee would have received in a separate paid time off system.

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3 years ago

At year-end, companies that utilize accrual-based accounting systems complete the measurement process through.

marshall27 [118]

Answer:

At year-end, companies that utilize accrual-based accounting systems complete the measurement process through posting of adjusting entries

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2 years ago