re the reasons for public (listed) companies bankrup

Q: What are some factors to consider in evaluating a company's ability to make payments on outstanding…

A: the factors list are net income:- the company will earn profit over its sales and make its…

Q: Real assets of a corporation are claims on their financial assets * True False

A: Real Assets are physical assets which the firm owns that have an intrinsic value based on their…

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: How is financial leverage related to bankruptcy?

A: Answer: Financial leverage is the debt-to-equity ratio and the financial capital decreases…

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

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

Q: Which of the following terms refer to the situation in which a firm has negative net worth?…

A: Net worth is computed by subtracting the total liabilities of the company from its total assets,…

Q: Why can a stockholder have the right to inspect corporate books and records? Is this right absolute…

A: Stockholders:-Stockholders also known as the shareholders of the company. Stockholders includes a…

Q: The liability of stockholders is normally limited to their investments in the corporation true…

A: The stockholders are considered as the owner of the corporation and the liability is limited to…

Q: Which of the following is primarily interested in the liquidity of a company? O Long-term creditors…

A: Liquidity of the company means short term debt paying capacity of the business. It means how much a…

Q: When can a company forfeit its shares? What happens to money already paid by the holder of those…

A: Normally when shares are issued by company, it requires shareholder to pay issue price installments…

Q: Contrast the effect of financial statement fraud on the following: The Stockholder The corporation…

A: Financial statements provide true and fair view of the business affairs of a firm. These include:…

Q: True (t) or False (f) _____ Bond interest paid by a corporation is an expense, whereas dividends…

A: Bonds are the certificates of loan taken by a corporation. It is typically secured in nature. The…

Q: The shareholder is usually liable for the corporation’s debts.

A: Shareholders refer to a person or entity who is owning shares in the company’s stock. One…

Q: Why impose regulations that require publicly traded firms to publish their financial statements?

A: Financial statements are the documents that need to maintain by the company in order to check the…

Q: WorldCom capitalized some costs that should,under standard accounting practices, have beenexpensed.…

A: a) Some companies take measures to inflate their reported income and to hide debts. This illegal…

Q: When should liabilities for each of the following items berecorded on the books of an ordinary…

A:

Q: A corporation that uses debt concentrates the risks of the business on the ___________.

A: Answer

Q: Which of the following is not an indicator about material uncertainty over the entity's ability to…

A: Accounting principles are general rules and guidelines that the company follows while recording and…

Q: What is the course of action (s) can be used to prevent fraudulent financial reporting in stock…

A: Fraudulent financial reporting  Reckless conduct, acts, or omissions, or Intentional…

Q: How would one characterize  holding company?  a). A company that "holds" only assets, no…

A: A holding company is a business entity—usually a corporation or limited liability company (LLC).…

Q: 1. What are the powers of liquidator in the case of winding up of a company?

A: Liquidator:   It is a person appointed to handle the procedure of liquidation. All assets are sold…

Q: How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the…

A: Introduction: This question stated that the company made the provision or provided for allowance for…

Q: Which of the following is not primary reason why corporation invest in debt . Select one: a. they…

A: There are several reasons why corporate invest in debts or equity. They mainly includes: They have…

Q: Which statement pertaining to provisions in the Companies Act 71 of 2018 is true? Select one: a. No…

A: THE COMPANIES ACT 71 WAS INTRODUCED TO PROVIDE FOR THE INCORPORATION , REGISTRATION , ORGANISATION…

Q: Explain why a duty to prevent insolvent trading is imposed on directors by statute. Provide an…

A: Financial Accounting Financial accounting is the process of recording financial events, summarizing…

Q: What is the effect on a corporation when it goes bankrupt?

A: Bankrupt happens when the corporation has insufficient funds to pay off the liability (or when it is…

Q: How did the Sarbanes–Oxley Act impact corporations’ financial reports?

A: The sarbanes Oxley act had a significant impact on the corporate governance of the us corporations,…

Q: hich of the following may not be an effect of VAT on the accounting records of a company?   The…

A: VAT is the value added tax which is applied to all sales of services and imports, as well as to the…

Q: Explain what "financial distress" means. Let's say that a company is in financial difficulties, and…

A: Introduction: Financial Distress is defined as a scenario in which a company's obligations, such as…

Q: 1. Which of the following does not affect retained earnings?   Choices;  Actual payment/distribution…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Which activities changes equity but does not affect a corporation's assets and liabilities?

A: Changes in equity: The amount of equity changes due to increase or decrease in the business…

Q: How would the transactions be reconciled if the bad debt allowance was changed to a bad debt…

A: Bad debts written off is an expense that is treated as irrecoverable and hence debited to profit and…

Q: What are corporate financial reports

A: The company requires a financial report in order to convey the financial information to the…

Q: How does a firm formally declare bankruptcy?

A: Bankruptcy is defined as the legal procedure through which the entities who could not repay the…

Q: What term is used to refer to denote that creditors usually may not go beyond the assets of the…

A: A creditor is an individual or an institution that has extended credit to a particular company. It…

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: 1. It refers to the capital of a corporation that cannot be withdrawn until final liquidation.  2.…

A: 1. It refers to the capital of a corporation that cannot be withdrawn until final liquidation.…

Q: Choose the correct. For a company emerging from bankruptcy, how are liabilities (other than deferred…

A: Liabilities:   The claims creditors have over assets or resources of a company are referred to as…

Q: What is bought and sold in the equities market? What’s the difference between an LLC and a standard…

A: Since there are more than one question is posted at a time. As per rule, only one question can be…

Q: Which of the following is not an advantage of the corporate form of business? a. limited liability…

A: Corporate is a popular form of business for the large and small industry. These types of business…

Q: Which of the following liquidating dividend is not legal?    a. Liquidating dividend of a continuing…

A: When a firm is insolvent and unable to pay its debts, it may be liquidated. At the time of…

Q: Why do certain corporations disclose non-GAAP financial measures?

A: This question explains about corporations disclose non-GAAP financial measures