(a) Distinguish between fixed and current assets. (b) Describe the current ratio. What makes current liabilities different from long-term liabilities? Provide an example of a current asset and how it might be used to finance current assets. How would you determine whether an asset is...
Land is a long-term asset, not a current asset, because it’s expected to be used by the business for more than one year. Current assets are a business’s mostliquid assetsand are expected to be converted to cash within one year or less. Because land is one of the longer term invest...
Describe capital budgeting? How would you interpret a beta of 1.5 for an asset? A beta of 0.75? Can you explain the concept of gap management? Define the following terms: Fixed and current assets. Explain how an asset swap can be used to hedge the interest rate risk in a bond po...
The best invented-word names tend to hint at what the company does without trying to describe it in literal terms. Examples (ordered from the most indirect to most direct hints): Trello (variation on trellis, a latticework structure)
When you borrow money from your 401(k), you're essentially your own lender. The loan terms are attractive. There's no credit check. You get a low interest rate — which you pay to yourself — and repay the loan within five years. And unlike with 401(k) withdrawals, you won't be ...
Which of the following is a non-current asset: A. plant and equipment. B. inventories. C. accounts receivable. D. marketable securities. How to report inventory on balance sheet as asset/equity? Describe what the value of assets would be if liabilities are $12,000 and ...
A permanent current asset is the minimum amount ofcurrent assetsa company needs to continue operations. Inventory, cash, andaccounts receivablefall under the category of current assets. Base amounts of these assets need to be sustained to carry on business. The assets are regarded as being curren...
If current assets are those which can be converted to cash within one year, non-current assets are those which cannot be converted within one year. On a balance sheet, you might find some of the same asset accounts under Current Assets and Non-Current Assets. This is because those same ty...
.” This means that the investor must have personal or joint assets of at least $1 million (not including the value of their primary residence) or the individual’s yearly income must have been at least $200,000 in the past two years with a similar amount expected in the current year....
calculators to do the work for you.3It cuts through the noise: a stock's value today equals the sum of all future dividend payments, discounted back to present value. This simply reflects a fundamental principle of value investing—that any asset is worth the cash it can generate for its ...