Liability or equity? A practical guide to the classification of financial instruments under IAS 32 July 2009 Liability or equity? 3 Introduction Liability or equity? When an entity issues a financial instrument, it must determine its classification either as a liability (debt) or as equity. That...
Answer true or false: A company's assets-to-equity ratio always equals one plus its liabilities-to-equity ratio. Under fair-value accounting for an equity investment, which of the following statements is false? a. An entity may...
Alternately, an investor can use a liability-driven investing approach that splits investment into two buckets; one, a fixed-income investment for consistent returns and the other, a higher risk equity investment. The greater returns offered by equities could be moved into the fixed income allocati...
Answer true or false: A company's assets-to-equity ratio always equals one plus its liabilities-to-equity ratio. True or False: The factoring firm bears responsibility for default on accounts receivable purchased from a firm. The sales tax payable account is reported in...