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What is a persons total financial assets that could e used to repay debt?
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What financial statement is most likely to provide information about a company's ability to repay debt?
Statement of financial position (Balance sheet)
What is ment by non banking assets?
No banking company can directly or indirectly deal in the buying or selling or bartering of goods, except in connection with the realisation of security given to or held by it. A bank can not acquire certain asset but can lend against such assets. this means that sometimes, in case of failure on the part of the loanee to repay the loans, the bank may have to take possessions of such assets. In that case, the assets will be shown in the balance sheet as "non banking assets." these assets must be disposed off in maximum seven years. Hope its the correct answer of your question....!!
Long term assets to total assets ratio?
An organization's long haul obligation to-add up to resource proportion estimates its influence and goes about as a measurement for deciding its dissolvability. The proportion is determined by separating all out long haul obligation (for example obligation with over a year to development) by complete resources. A drawn out obligation proportion of 0.5 or less is viewed as a decent definition to show the wellbeing and security of a business.
Why companies have cash flow problems?
1) Overtrading. 2) Poor debtor collection policy and or relaxed debtor screening process. (Bulk of sales are on credit) 3) Purchase of Investment/ Fixed assets during the financial year. 4) Redemption of debt funds, e.g. Debentures and bank loan. 5) Redemption of Equity funds, e.g. Preference share capital. 6) large financial burden ( the need to service high interest) 7) Credit period not made use of. (Repay creditors too quickly / Cash purchases instead of Credit purchases) 8) Prepayments during the year.
Why final accounts are important to all of the busienss?
Final accounts and balance sheets help investors make sense of a company's financial condition. They show financiers whether the business is forthcoming with performance data, how it intends to marshal its resources to pound the competition, and the steps it is taking to repay its long-term loans and avoid lender exodus.
where can i get a small business loan, that i do not have to repay?
You can take a small business loan, but you will have to repay it or face bankruptcy and having your assets seized. Instead you can pursue a grant, which you do not have to repay.
What are the two types of financial assets created in the process of direct financing?
The two types of financial assets created in the process of direct financing are equity securities and debt securities. Equity securities represent ownership stakes in a company and include stocks or shares. Debt securities are loans made to a company and include bonds or notes, which represent the company's promise to repay the borrowed funds with interest.
Is industrial unit covered under sarfaesi act?
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, allows banks and financial institutions to auction properties (both residential and COMMERCIAL) when borrowers fail to repay their loans. It enables banks to reduce their non-performing assets (NPAs) by adopting measures for recovery or reconstruction.
What is meant by a financial hardship in a loan agreement?
Financial hardship in a loan agreement refers to the fact that the person is struggling to repay their loan. They may be struggling to repay to the lender's agreement.
What is a financial failure caused by a company's inability to repay its debts?
bankruptcy
What happens to my paid off car in a bankruptcy?
Owned assets are auctioned off to repay all creditors.
What are the 3 C's of creditworthiness?
Capacity. The present and future ability to meet your financial obligations. Some of the areas examined would be your work history and the amount of debtthat you already owe.Capital. Savings and other assets that could be used as Collateral for loans. Even if you are not required to post collateral, many creditors express a preference that you have assets other than income that could be used to repay a loan.Character. This boils down to trustworthiness, promptness in paying your existing bills and other debts, and your credit history.
What are the 3c's of credit?
The 3 C's of credit are character (credit history and reputation), capacity (financial ability to repay debt), and collateral (assets that can be used to secure a loan). Lenders use these factors to evaluate a borrower's creditworthiness when deciding whether to approve a loan.
What financial statement is most likely to provide information about a company ability to repay debt?
Statement of financial position (Balance sheet)
What financial statement is most likely to provide information about a company's ability to repay debt?
Statement of financial position (Balance sheet)
What caused the financial collapse in the United States?
The financial collapse in the United States is subject to opinion. However, popular belief is that it began with the housing downturn and then banks began giving out money to people who couldn't afford to repay the loans.
How do you write a letter of financial distress?
You can write a letter of financial distress by explaining your situation. You can ask for a specified amount of time to repay a loan and tell them when it will be paid.
