Other potential creditors,such as landlords, cell phone providers and utility companies, also use FICO scores to assess the risk that you won’t pay on time. People with low FICO scores may have trouble entering into contracts or be required to pay a security deposit. ...
What is the main difference between debtors' and creditors' control accounts? Which of the following statements is correct? a. Senior debt is debt that has been more recently issued, and in bankruptcy it is paid off after junior debt because junior debt was issued ...
What is classified as a prepaid expense account? What is destructive, obstructive and proactive about in business? Give an example of matching principle in accrual accounting. How does a change in exchange rates affect an economy? What is an example of a fundamental niche?
This type ensures that all amounts the company owes to suppliers and other creditors are accurately recorded in the accounts payable ledger and match the corresponding entries on the balance sheet. Example: The accounts payable ledger of a business shows liabilities totaling $15,000, whereas the ...
Business owners may benefit from a range of advantages as an LLC, including the following: Personal liability protection Unlike a sole proprietorship or general partnership, an LLC protects the owner’s personal assets from lawsuits and creditors. The exception is if the business engaged in fraudulen...
As a result, financial ratios derived from reclassified data may not accurately reflect the company's financial health, leading to potentially misleading conclusions. Decision-making process Accurate and reliable financial information is crucial for decision-making. Reclassification accounting can introduce ...
Filing taxes as a partnership is also easy. Both partners can also file their tax returns separately. However, both partners are liable for the other person’s debt. If the business can’t pay its debt, the creditors can take action against any business owner.³ Forming a partnership ...
Debt settlement plan: You should only consider a debt settlement plan as a last resort. A debt settlement plan is different from a debt consolidation loan because a debt relief company negotiates with your creditors to lower your debts for less than what you owe, rather than moving your debts...
Secured creditors, often a bank or mortgage company, have a legal right to reclaim the property, such as a car or home, used as collateral for a loan, often through a lien or repossession. An unsecured creditor, such as a credit card company, is a creditor where the borrower has not ...
Equity securities do entitle the holder to some control of the company on apro rata basis, viavoting rights. In the case of bankruptcy, they share only inresidual interestafter all obligations have been paid out to creditors. They are sometimes offered aspayment-in-kind. Debt Securities A deb...