What is debt

Q: How Interest, Principal, and Loan Balance Illustrated?

A: Answer: Interest is measured as a percentage of a loan balance, annually paid to the lender for the…

Q: What does Total debt include?

A: Answer: Generally, debt is an obligation imposed upon a corporation to manage its business. Total…

Q: What is marginal rate (for debt)?

A: Marginal rate of debt is the rate of interest expected by the investors on their debt instruments…

Q: What are advantages of debt financing?

A: The advantage of debt financing: Ownership remains with the person itself as when the person agrees…

Q: Secured vs Unsecured debt

A: Secured Debt: These are debts backed up with some collateral like assets. Hence the borrower of the…

Q: Why is the relevant cost of debt the interest rate on new debt, not that on alreadyoutstanding, or…

A: The pre-tax cost of debt for a company, rd, is the interest rate the company should settle on fresh…

Q: what is creditor and debtor?

A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…

Q: What are accrued liabilities?

A: Accrued liabilities are the outstanding expenses which are due or incurred but not yet paid in cash.…

Q: What is the distinction between debtor and creditor?

A: Accounts receivable Accounts receivable refers to the amounts to be received within a short period…

Q: What is Debt Service?

A: Step 1 The amount of money required to pay interest on the loan with the principal over some time is…

Q: How is Collateralized debt obligation created. Plelase explain in details

A: Collateralized debt obligation (CDO): Collateralized debt obligation (CDO) is the bundle of loans…

Q: What is the significance of a debt coverage ratio?

A: Debt service coverage ratio (DSCR) is one of the numerous financial proportions that moneylenders…

Q: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…

A: The Answer

Q: Define CDO, collateralized debt obligation

A: The question is based on the structure and definition of Collateralized debt obligation (CDO), the…

Q: Explain in detail what is debt or debt financing? Examples

A: In a debt arrangement, one party is allowed to borrow some amount from other party as per given…

Q: What are the differences between a debtor and a creditor?

A: Creditor: Creditor is a person or a company who has provided fund or loan, and hence, has a claim…

Q: What is liabilities?

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

Q: What are the two types of debt financing?

A: Debt:   A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

Q: Why debtors control account may have credit balance

A: DEBTOR CONTROL ACCOUNT- IT REFLECTS THE TOTAL AMOUNT OWNED BY ALL THE INDIVIDUAL DEBTORS. THE…

Q: debt

A: Cost of debt can be defined as the rate of interest which a company incurs on its debts. The cost of…

Q: difference between debt and quity

A: A company’s capital consists of two forms, one is equity and the other is debt. When a company is…

Q: What is a financial instrument?

A: Introduction: A financial instrument is a physical or computer-generated document showing a legal…

Q: Explain the differences between domestic debt and external debt.

A: Debt is defined as money borrowed through one party by another. Many businesses and people utilize…

Q: What is a debtor

A: Solution:- Debtor meaning as follows under:-

Q: sources of financing through LO

A: Long term debt is a non current liability that is liable to be paid after one or more years.

Q: When should a debt security be classified as held-tomaturity?

A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…

Q: What are financial obligations? How they can be overcome?

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

Q: What is the structure of Collateralized debt obligation. Please explain in details

A: A collateralized debt obligation also known as CDO is a complex structured credit product which is…

Q: Define the term debt ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Why does the use of debt lower ROA?

A: Introduction: Debt can be characterised as an amount or sum owned by a person to another for…

Q: What is the main difference between debt and equity

A: Debt basically refers to the liability that the organization take to run their business activities…

Q: What’s financial instrument

A: Financial instruments can be broadly divided into: a. cash instruments b. derivatives instruments

Q: What is Secured Borrowing?

A:

Q: Give some examples of debt financing?

A: Following are some examples of debt financing: Whereas, Debentures are a corporate or government…

Q: Explain required rate of return on debt

A: Debt is some amount of money owed by a borrower to the creditor. Debt can be two types. One is…

Q: What is the difference between liabilities and assets?

A: The balance sheet represents the financial position of the business with assets and liabilities at…

Q: Define debt ratio

A: Ratio refers to the relationship between the two quantities which shows the quotient of one divided…

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: Explain the nature of long term debt.

A: Nature of long-term debt: Long-term debts are the obligations of the company that are required to…

Q: What does the debt ratio represent?

A: Debt to assets ratio: The debt to asset ratio shows the relationship between total asset and the…

Q: Define required rate of return on debt

A: The required rate of return: This rate of return equates to the minimum return an investor would…

Q: How is accrued interest calculated?

A: Accrued interest is the amount of interest that has been due but not received by the lender or…

Q: Then what was the difference between a creditor and a debtor?

A: In normal course of business goods are sold and Purchased in cash and on account. Every business has…

Q: What are out of period debts? Explain?

A: Out of Period debts: It is also known as time barred debts.

Q: What Are Liabilities and Equity?

A: includes assets, liabilities, equity (equity), short-term loans, long-term loans, and other relevant…