What is insolvent?

Q: What is meant by debentures?

A: A company has several sources from where it can raise funds. It can issue equity shares and the…

Q: What is Insolvencey?

A: Liability: It is the legal financial debt owed by a company to outside entities that arises over the…

Q: What is imputed interest?

A: Interest: Interest is a charge against the amount due, Interest is paid on the amount borrowed as a…

Q: In what situations is interest capitalized?

A:

Q: What is Ending capital

A: Formula: Ending Capital = Beginning capital + Net income - Drawings

Q: Which are the Borrower’s Rights to Reinstate?

A: The person that takes something from another person with a promise to return back at a specified…

Q: What is financial material abuse?

A: Financial Material Abuse - Financial material abuse refers to the abuse of  fraud , theft or making…

Q: What does liquidity mean?

A: Liquidity:

Q: In what situations is interest capitalized rather than expensed?

A: Capitalized interest is the cost of the funds used to finance the construction of a long term asset…

Q: If a firm does not provide for accrued liabilities, what problems may thefirm face?

A: Assuming this is the case, at that point. The Organization has not gotten the accrued liabilities.…

Q: What does the term insolvent mean?

A: When a person's liabilities exceed the assets owned by him and he is unable to pay the debts which…

Q: What is arbitrage?

A: Arbitrage It is the buying and offering of an asset to benefit from a distinction within the cost…

Q: What is lessor?

A: A lease is the agreement between two individuals. Under the lease agreement one individual provide…

Q: What Constitutes Default?

A: When an individual or a company is unable to pay the loan amount then it's termed as default. It…

Q: What is liabilities?

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

Q: what is the difference between unsecured and secured transactions in terms of default

A: These types of transactions are based on the creditworthiness. These are loan or other credit…

Q: What is the fair value option? Briefly describe the controversyof applying the fair value option to…

A: Meaning of fair value option:

Q: irrecoverable debts t

A: Allowance of doubtful debt is a provision created for uncertainty regarding collection from accounts…

Q: What is securitization?

A: Introduction: Finance reflects a broad variety of spaces where decisions can be taken relative to…

Q: What are spontaneous liabilities?

A: spontanous liabilities

Q: What is securitization? What are its advantages to borrowers?What are its advantages to lenders?

A: Securitization is a financial process that takes an asset of some kind and turns it into a security,…

Q: What is unsecured borrowing?

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

Q: What does “nonrecourse” financing mean?

A: Nonrecourse financing is a branch of commercial lending. It makes the lender only to repay from the…

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: How is internal control applied to liabilities?

A: It is often seen that frauds, employees thefts, and manipulation of records incur in the…

Q: What is commercial risk?

A: In financial terms, risk is defined as the possibility that the real profits from an outcome or…

Q: What is the difference between fair value and market fair value?

A: Fair value refers to the value that represents the worth of a particular item. It is the value that…

Q: Why do deferred liabilities arise? Explain your answer with suitable example.

A: Why do deferred liabilities arise? Explain your answer with suitable example.

Q: fair value gain? And what effect it has on Balance sheet?

A: The balance sheet includes the assets, liabilities, and stockholders' equity of the company.

Q: O No, because it represents debt.

A: IOU in money shows the existence of debt which represents the informal written agreement that is a…

Q: Why does IPO underpricing exist?

A: IPO - IPO stands for Initial Public Offer. When company want to list their shares on the stock…

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 meant by issue of debentures as collateral Security?

A: Collateral is an asset or property that is given by a borrower to lender to secure the loan.…

Q: In what way do current liabilities and long-term liabilities differ from each other?

A: Current liabilities are liabilities that are due within one year. In other words, current…

Q: legal reserve

A:

Q: What does the term noncontrolling interest mean?

A: This term is generally used when consolidated statement is prepared by the parent entity. There are…

Q: What is financial risk?

A: Risk means the type of danger. Financial risk refers to the situation of losing money on an…

Q: What does insolvent mean

A: Insolvent is a term that relates to the debtors payment.

Q: Why is the fixed asset riskier than current asset?

A: In financial accounting, the company's financial statements assets are classified into two…

Q: Explain Alternatives to Foreclosure?

A: Assets can be mortgaged by borrower with the lender to secure debt. Foreclosure is a process…

Q: What is the cost of accrued liabilities? If accruals have such a low cost, why don’tfirms use them…

A: An accrued liability refers to an expense a business has incurred during a specific period but has…

Q: How does title insurance work? Why is it not absolute (fool-proof

A: Title insurance is that insurance product that is related to the world of real estate. It is an…

Q: Is profit an asset or liability?

A: profit or income are generally classified under assets.