Assurance is to make sure of something and insurance is to keep the security or safety of something
Answer:
The amount of the projected benefit obligation at December 31 was $ 38.34 million
Explanation:
According to the given data, we have the following:
Beginning PBO= $29.4 million
Service cost= $9.4 million
The actuary's discount rate was 10%, hence Interest cost (10% x $29.4 million)= $2.94 million
Also, there is a Loss (gain) on PBO=$0
, and pension benefits paid by the trustee were $3.4 million.
Therefore, to calculate the amount of the projected benefit obligation at December 31 we would have to use the following formula:
Ending PBO=Beginning PBO+Service cost+Interest cost-pension benefits
=$29.4 million+$9.4 million+$2.94-$3.4 million
=$38.34 million
The ability to meet short-term obligations and efficiently generate revenues is called Liquidity.
Liquidity is the ease or speed with which money can be raised to meet short-term financial responsibilities such as paying bills. Stocks and bonds, as well as other easily tradable assets, are regarded as liquid assets.
A company's liquidity can be determined by how well it can meet its short-term obligations, particularly those that are due in less than a year. What the business owes in comparison to what it owns is typically represented as a ratio or percentage. You can gain insight into the company's financial situation by using these metrics.
The liquidity status of a business is primarily affected by two factors. The first factor is its capacity to transform assets into cash to cover its present liabilities (short-term liquidity). Its debt-carrying capability is the second.
To learn more about Liquidity refer to:
brainly.com/question/13646882
#SPJ4
Answer:
The false statement is letter "A": As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
Explanation:
Indeed, the value of a firm represents its value before deducting what the company owes. Though, in order to calculate the correct multiple, specialists tend to divide the debt by a measure of income or cash flows before interest payments go through.
