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What Resources are used to meet obligations to investors and creditors?
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How does the description of accounting as the language of business relate to accounting as being useful for investors and creditors?
creitors are the persons who have extended credit to the company.they are also interested in the financial statements because they wiil help them in ascertaining whether the enterprise will be in a position to meet its commitment towards them both regarding payment of interest and principal... investors: a person who is contemplaing an investment in a business will like to know about its profitability and financial position.a study of the financial statements will help them in this respect
What do you call a financial budget that estimates cash flows on daily basis or weekly basis to ensure that the company can meet its obligations?
A cash budget.
In which financial statement can I find if a firm is able to meet all it's short-term obligations?
The Balance Sheet will show the Short-term Assets and the Short-term Liabilities.
What is the relationship of accounting in the management of an organization?
It's a question of resources, isn't it? Management accounting is the evaluation of the organizations' resources, and a complete knowledge of one's resources is necessary for business decisions: planning (identifying goals & objectives), organizing (structuring departmental resources to meet said goals), leading (maintaining morale & managing communication and employee relationships), and controlling (determining measurements of success and developing toward achieving them).
Profitability and liquidity?
Profitability is simply a measure of how successful a company is relative to its inputs. Measures of profitability include gross profit and net profit ratios, return on assets, return on equity, etc. Liquidity is a measure of how likely a company is to meet its short-term obligations (e.g., will it be able to settle its liabilities on time). Standard measures of liquidity include current ratio and quick ratio. Both of these measures are important parts of assessing a company's financial standing. For example, even if a company is profitable, if it is having a hard time meeting it's short-term obligations, then something is wrong with its operations. Likewise, if a company is very liquid because it has large cash reserves lying around, it means that it might not be using its resources efficiently, and should be using some of that cash to invest in company growth.
What is callable capital?
Callable capital is that portion of subscribed capital stock subject to call only as and when required by the Bank to meet its obligations on borrowing of funds for inclusion in its ordinary capital resources or guarantees chargeable to such resources. In the event of a call, payment must be made by the shareholder in the currency required to discharge the obligation of the Bank for which the call was made. Callable capital is available to protect the Bank's creditors - mainly investors in the Bank bonds and holders of guarantees - in the unlikely event of a large-scale default by the Bank's borrowers.
2 What questions about cash are answered by the statement of cash flows?
In a nutshell, statement of cash flow provides detailed summary of where cash came from and how it was used. It helps investors, creditors, and others assess an entity's ability to generate future cash flows, to pay dividends and meet obligations; the reasons for the difference between net income and net cash provided (used) by operating activities; the cash investing and financing transactions during the period.
What is solvency?
Solvency is having assets greater than liabilities and the anticipated ability to pay your obligations using them. Insolvency is having more obligations than your assets can be expected to meet. ............................................................................................................................... Solvency refers to a company's ability to meet its long-term obligations through its operations. It is often confused with liquidity, which refers to a firm's ability to meet it's financial obligations with cash and short-term assets it currently holds. A company may be illiquid but solvent; meaning that they are starved of cash (and no one will give them cash), but have long-term assets that are valuable enough to meet obligations in the long-term. Solvency is when a business can meet their long term goals for financial obligations.
important of accounting information to shareholders?
Financial statements are important to investors because they can provide enormous information about a company's revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations. There are three major financial statements.
What is the definition of defaoult?
A failure to meet financial obligations, or a failure to appear in court.
Can you avoid a 200.00 cell phone cancellation fee?
Meet your contract obligations.
What is meant by the economic risk of a nation?
The ability or intention of a nation to meet its financial obligations.
What is the study of how to meet unlimited wants and unlimited resources?
the study of how to meet unlimited wants and limited resources is economics.
Do you have sufficient resources to meet the world Demand?
My resources are limited
How does the description of accounting as the language of business relate to accounting as being useful for investors and creditors?
creitors are the persons who have extended credit to the company.they are also interested in the financial statements because they wiil help them in ascertaining whether the enterprise will be in a position to meet its commitment towards them both regarding payment of interest and principal... investors: a person who is contemplaing an investment in a business will like to know about its profitability and financial position.a study of the financial statements will help them in this respect
What does a company's solvency mean?
Solvency refers to a company's ability to meet its long-term obligations through its operations. It is often confused with liquidity, which refers to a firm's ability to meet it's financial obligations with cash and short-term assets it currently holds. A company may be illiquid but solvent; meaning that they are starved of cash (and no one will give them cash), but have long-term assets that are valuable enough to meet obligations in the long-term.
What solvency ratio means?
The term 'solvency' means the ability to meet maturing obligations as they come due
