Discuss how Floating and Fixed debentures affects the profitability of a business?

Q: What are the possible actions when a business becomes insolvent?

A: Insolvency occurs when a person or business is unable to service the debt to lenders as debts come…

Q: Which of the following represents an obligation of the company? Liability Asset Owners' Equity…

A: The obligation of a company is the company's responsibility that has to be paid.

Q: Could a privately held company benefit from usingGAAP accounting, e

A: The Financial Accounting Standards Board publishes generally accepted accounting principles (GAAP),…

Q: what is the difference between a sole trader , pafrtenership and a company . explain

A: Sole proprietorship in easy words could be a one-person business organization. moreover, a sole…

Q: To what extent a company uses debt financing (or financial leverage) in business operations?

A: The question is based on the concept of capital structure of a company, the capital structure is a…

Q: What is off-balance-sheet financing? Why might a companybe interested in using off-balance-sheet…

A:

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

A: Definition:   Equity method: Equity method is the method used for accounting equity investments…

Q: What are the similarities and differences between a limited company and a sole trader's statement of…

A: Organization- The organization is the process of identifying and gathering work to be done,…

Q: What amount of total assets have been financed by the creditors and by the stockholders?

A: Total Liabilities= Current Liabilities + Non current liabilities Stockholders equity= Common stock+…

Q: How solvent is the business and how many interest payments can the business service on its own?

A: Solvency of the company is the ability of a company to meet its long-term debts and financial…

Q: What is “comprehensive income”? Its composition varies from company to company but may include which…

A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…

Q: hat is preferable from the point of view of an investor? a. To value the business using the Asset…

A: An investor's share is represented via equity in a company, while total assets are represent as both…

Q: When a company decides to pay a dividend, explain what makes the payment a dividend as opposed to…

A: Dividends will be declared and paid by the companies to their shareholders. There are two types of…

Q: How does inflation affect the financial statements of a parent and subsidiary business?

A: Inflation is defined as the rise in price level in the economy, i.e. rise in the prices of goods and…

Q: Overall do you agree or disagree with the argument that financial statements should be stated as…

A: Historical cost refers to the original purchase cost of an asset whereas fair value is an estimate…

Q: How does a company determine whether to account for an equity investment using the fair value…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: the issuance of its stock is an example of which type of business activity?

A: First we should know the meaning of all this terms,  a) Operating :- Its name is explaining…

Q: In relation to investments and fair value, what are the two categories of investments that companies…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Can you tell whether a business can or cannot meet its obligations when it becomes due based on the…

A: Balance sheet refers to the financial statement of a company which includes asset ,liability, debt ,…

Q: Explain how factoring works. Of what benefit is factoring to a firm that sells its receivables?

A: Lets first understand the meaning of factoring. Factoring is a selling the debtor to the factor at…

Q: Describe how operating and capital leases affects all three of the financial statements. How might…

A: Operating Lease In a simple word operating lease is defined as there are two parties involved in the…

Q: Explain how ratio analysis can be used to evaluate the business ability to pay its debt Which…

A: Ratio Analysis:   It is a technique by which the financial position of a company is analyzed. This…

Q: Why is the Equity Valuation method is preferable from the point of view of an investor in valuing…

A: Valuation is the process of ascertaining the market value of the business or an asset. The valuation…

Q: While putting the value or price of an entity in financial records the lowest price is recorded not…

A: Accounting is the process of recording financial transactions (which can be measured in terms of…

Q: In general, how much do unsecured creditors receive from aliquidation? How much do stockholders…

A: Liquidation of a company refers to a procedure in which all the assets of the company are sold and…

Q: Define the term Return on Common Equity? How does it measure profitability?

A:

Q: If common stockholders are the owners of the company, why do they have the last claim on assets and…

A: common shareholders are the owners of the company because they are the actual owners, shareholder…

Q: How is the income based valuation model important in the business? Discuss sub topics such as…

A: Income Based Valuation Approach esteem a business dependent on the past, current, or expected future…

Q: How can you tell of a company is profitable?

A: Profit. of a Company:After deducting all of the costs associated with running a business, the amount…

Q: How does sources of financing affects tax liability of the business? (Focus only one Source of…

A: Corporate funding sources include equity, debt, corporate bonds, retained earnings, term loans,…

Q: produ corporal an use to money Explain the characteristics of each product and the priority of their…

A: In this question there are two multiple questions and as per company policy it is only possible to…

Q: Can a business earn a gross profit but incur a net loss?

A: Gross Profit is computed by deducting cost of goods sold from the sales revenue of the business. And…

Q: Selling equity in the business provides both the opportunity to repurchase and the obligation to…

A: A business is started with the capital of the owner(s). The contribution made by owners are used to…

Q: If common stockholders are the owners of the company, why do they have the last claim on assets and…

A: Common shareholders spend their capital in the company and thereby become the company's owners. As…

Q: Is a company's dividend policy payment important? Please explain why or why not

A: Dividend:- dividend is distribution of profits by the company to its investors or shareholders,…

Q: How important is liquidation based value in a business?

A: Answer: Liquidation based value is the value of company that is determined on the basis of the…

Q: Is debt good for a company? Why or Why not?

A: In terms of finance, debt can be defined as the borrowed money on which the borrower of the fund is…

Q: Describe the order of claimants and how it impacts the returns that various providers of capital…

A: Claimants refer to the creditors who are entitled to receive the payments, from the debtor…

Q: What occurs when a business factors its receivables?

A: