Answer: Long-term assets are assets with a duration of more than one year. From the list the parties classified as long-term assets are three:
- Land
- Buildings
-Equipment
The rest of the games are classified as:
Accounts receivable (short-term assets)
Notes payable (due in three years) (Long-term liabilities)
Accounts payable (Short-term liabilities)
Retained Revenue (Equity)
Prepaid rental (Short-term assets)
Unearned Renvenue (Short-term liabilities)
Notes payable (due in six months) (Short Term Liabilities)
This implies that 2%/15 net 30 is a method of giving cash discounts on
purchases. What this means is that if the bill is paid within 15 days, there is
a 2% discount. Or else, the total amount is payable within 30 days. For instance,
if "$1000 2/15 net 30" is printed on a bill, the buyer can take a 2% discount ($1000
x .02 = $20) and make a payment of $980 within 15 days or pay the whole $1000 in
30 days.
Answer:
10.64 years
Explanation:
To find the number of years , use this formula :
FV / PV = (1 + r) ^n
FV = Future value = $1 million
P = Present value = $560,000.
R = interest rate = 5.6%
N = number of years
$1,000,000 / $560,000 = (1.056)^n
1.785714 = (1.056)^n
Find the In of both sides
n = 10.64 years
A firm that relies heavily on debt are the firm that describe a highly leverage firm. Highly leveraged firm refer to a firm that depends on borrowed capital. They have higher debt that equity. Their debt is what they considered as asset.