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3 years ago

Long-term creditors are usually most interested in evaluating __________

Business

1 answer:

Finger [1]3 years ago

5 0

Answer: Solvency

Explanation:

Long-term creditors want to ensure that a company will pay its outstanding debts. Solvency is the ability of a company to meet its long-term debts and financial obligations. Solvency is essential to staying in business as it demonstrates a company's ability to continue operations into the foreseeable future. Periodically checking your business’s solvency ratios can help ensure your company’s fiscal health. In addition to helping businesses evaluate their capital structures, solvency ratios may assist owners in determining whether internal and external equities must be redistributed.

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What is a good sport or activity to do in high school that looks good on your college application?

nekit [7.7K]

Answer:

football,volleyball,tennis, basketball or

singing,dancing e.t.c

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3 years ago

If a journal entry and posting for the use of one month of rent from the prepaid rent account during the year is accidently omit

tensa zangetsu [6.8K]

Answer:

Expenses will be understated, hence, Net Income will be overstated.

Rent prepaid will be overstated, hence, current assets will be overstated.

Explanation:

Ordinarily, rent prepaid is meant to be credited every month to the tune of the the value that has been consumed and then added to period expenses to reduce net income.

In the statement of Financial Position, the same amount that has been consumed should be used to reduce balance in rent prepaid account, otherwise, current assets will be overstated if no adjustment is made.

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3 years ago

The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet i

tankabanditka [31]

The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet in the section entitled of Long-term liabilities.

What is Long-term liabilities?

Long-term liabilities can be regarded as loans aa well as other financial obligations that the repayment schedule would be expected to last over a year.

Some of the examples long-term liabilities are;

deferred revenues
post-retirement healthcare liabilities.
bonds payable
long-term loans
pension liabilities

It should be noted that balance in Discount on Bonds Payable that has a due time of three years would be reported at Long-term liabilities section.

Learn more about Long-term liabilities at:brainly.com/question/25596583

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2 years ago

Compared to attending a technical school, completing a four-year college degree allows you to

Ivanshal [37]

Enter the workforce sooner

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3 years ago

Suppose you purchase a 10-year bond with 6.5 % annual coupons. You hold the bond for four years, and sell it immediately after

Andrews [41]

Answer:

a. What cash flows will you pay and receive from your investment in the bond per $ 100 face value?

Year 0 Year 1 Year 2 Year 3 Year 4

-$109,13 $6,50 $6,50 $6,50 $112,53 (6,5+106,03)

b. What is the annual rate of return of your investment?

5,3%, the YTM of the bond.

Explanation:

If the YTM of the bond does not change during the year, it means that at the time the bond was sold, the total rate of return would be the same as was when the bonds were purchased, in this case 5,3%.

Bond Value

Principal Present Value = F / (1 + r)^t

Coupon Present Value = C x [1 - 1/(1 +r)^t] / r

Price of the Bond at the moment it was purchased:

The price of this bond it's $59,66 + $6,5 = $109,13

Present Value of Bonds $59,66 = $100/(1+0,053)^10

Present Value of Coupons $49,47 = $6,5 (Coupon) x 7,61

7,61 = [1 - 1/(1+0,053)^10 ]/ 0,053

Price of the Bond 4 years later:

The price of this bond it's $73,66 + $32,68 = $106,03

Present Value of Bonds $73,66 = $100/(1+0,053)^6

Present Value of Coupons $32,68 = $6,50 (Coupon) x 5,03

5,03 = [1 - 1/(1+0,053)^6 ]/ 0,053

4 0

3 years ago