What makes current liabilities different from long term liabilities?

Q: Explain Long-term liabilities?

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

Q: How is the value of an asset determined by predicted future cash flows?

A: The Answer

Q: What are Contingent Liabilities?  Give an example.  What are the factors that determine the reason…

A: A liability, the occurrence of which is uncertain that is it may or may not occur is known as a…

Q: What is the calculation for return on assets (ROA)? Explain what ROA measures?

A: ROA is the abbreviation used for Return on Assets. It a common accounting term and this is usually…

Q: In a theoretical sense, the financial value of any asset is the present value of:

A: The Answer

Q: In finance, explain how the DuPont system of analysis breaks down return on assets?

A: EXPLANATION:- Financial performance is calculated by multiplying a corporation's profitability by…

Q: What basic principle of finance can be applied to thevaluation of any investment asset?

A: Investor invests in any investment to earn the returns from it. As per the risk and return analysis,…

Q: How do you evaluate an asset whose value is predicated on future cash flows?

A: Assets are the resources that are generally used for the purpose of revenue generation by the…

Q: How compound interest related to time value of money?

A: Compound Interest is the interest calculated on the principal that also includes the interest amount…

Q: What is the relationship between total liabilities and total assets?

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

Q: Briefly describe how the concept of the time value of money is incorporated intothe valuation of…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: What are contingent liabilities?

A: Liabilities by and large, are a commitment to, or it is an amount that one owes to another person.…

Q: Difference between current and long term liabilities?

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

Q: le

A: Formula:  Current ratio = Current assets / Current liabilities Working capital = Current assets -…

Q: What assets are viewed as current financial resources?

A:

Q: Give an example of Current Asset, Current liabilities, Non Current Asset, Non Current Liabilities

A: 1. Current Assets : These are the assets which are convertible into cash within a Year   Example: 1.…

Q: Explain the Principle of Investing in Financial Assets?

A: Securities are the financial assets that are traded in the financial or secondary or securities…

Q: What is the Principle of Investing in Financial Assets?

A: A financial asset is a liquid asset that gets its value from an authoritative right or guarantee to…

Q: what is total liabilities?

A: Solution-   Total Liability-Total liabilities are the combined debts and obligations that an…

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: What is the difference between "change in current assets" and "change in liabilities?

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: Potential liabilities that depend on future events arising out of past events are calleda.…

A: Current liabilities: Current liabilities are the liabilities that are payable within a period of…

Q: What are the advantages of matching the maturities of assets and liabilities? What are the…

A: Matching the maturities of assets and liabilities refers to matching the similar category of assets…

Q: What does the rate of return on total assets measure, and how is it calculated?

A:

Q: How do firms finance investments in current assets?

A: A current asset is the assets that only include those assets that can be easily converted to money…

Q: What are the advantages and disadvantages of financing assets through loans

A: Resource account is that the act of utilizing Associate in Nursing organization's financial record…

Q: Describe the Principle of Investing in Financial Assets?

A: The financial assets are those assets which are not having a physical existence like stocks, fixed…

Q: What are the current liabilities? Give some examples of current liabilities?

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

Q: Explain the significance of time value of money in financial valuation?

A: Time value of money means the value of a sum of money in future is not the same as the value of…

Q: Why we need to know the interest, annuities, amortization and mortgage especially in real life?

A: Money charged on a regular basis at a set rate for the use of borrowed funds or to postpone debt…

Q: If a company has asset classes that include short-term and long-term investments, what criteria…

A: Step 1 As per US GAAP, the proper classification should be required in the financial statements for…

Q: How do firms use current liabilities, including accounts payable, accruals, lines of credit,…

A: Current liabilities are those liabilities which have a maturity period of one year or less than one…

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: Why does the interest in the original investment or the capital cost is included as a cost in the…

A: The annual worth method is the method in which all the cash flows are equally distributed across the…

Q: - adjusted total current liabilities

A: Current liabilities are the obligations repayable within a year. It is a part of liabilities' side…

Q: Give a numerical example of: Current liabilities. Long-term liabilities

A: Introduction: Current liability: These also called as short term liabilities. Liabilities which are…

Q: How is the value of any asset whose value is based on expected future cash flows determined?

A: Answer: When there is a sequence of expected future cash flows, cash flow method is one of the best…