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The term "liquidity" is commonly used; however, "solvency" is probably a more accurate term.
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∙ 15y ago
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Tax debt is what type of debt to a company?
Tax debt refers to the tax paid on the amount of debt the company has outstanding still. This varies significantly by company and non-profits do not pay tax.
The most rigorous test of a firm's ability to pay its short-term obligations is its?
debt-to-assets ratio.
Evaluation of a company's ability to pay current liabilities?
Use the following ratios to evaluate a company's ability to pay current liabilities: Working Capital Ratio Current Ratio Acid-test Ratio
What ratio measures a company's ability to pay current liabilities?
current ratio
What is the difference between debt capital and equity capital?
A company can raise capital by using the two means - Equity & Debt Equity means ownership. Everyone who owns an equity share of a company owns a part of the company. He/she can influence the decision making in the company Debt represents an obligation. The company is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date. the loan provider has no say whatsoever in the decision making of the company...
What shows a company's ability to pay long term debt?
One method that displays a company's ability to pay long term debt is its budgets for research and development. Another method is to study how the company has been able in the past to pay off long term debts and yet another method is to see if it carries as its history sufficient bank reserves.
What ratios is least useful in a evaluting a company's ability to pay its current debts as they become due?
debt to equity ratio
One measure of the ability to pay the national debt is the debt to?
GDP Ratio
What is the word for the ability to pay debt in your local currency It begans with soverign or a derivation there of.?
the ability to pay bills
Can you pay your debt to the original company if the debt has been passed to a credit company?
No because the original company has 'sold' the debt to the credit company or in other words the credit company has bought the debt account from the original company for less than what you owe. That is why credit companies keep chasing you to pay them.
Tax debt is what type of debt to a company?
Tax debt refers to the tax paid on the amount of debt the company has outstanding still. This varies significantly by company and non-profits do not pay tax.
Do providers have to repay company that goes into bankruptcy?
I am not an attorney. But my thought is, yes of course. You still have a debt and you made an arrangement to pay it back. The company still has assets in the form of outstanding debt, and these assets will be used to pay the company's own debt. If I were one of the company debtors, you can be sure I'd be expecting people to pay the company what is rightfully owed. Again, I am not an attorney.
What happens if your lender is bought by another company?
You have to pay the new company. It's still a debt and as such the debt was sold as an asset of the old company. It would be NICE if you didn't have to pay it, but you do. Yea, wouldn't it be nice if we didn't have to pay after the local finance company sold my note to GMAC?
Why money is the most liquid asset?
Creditors may be particularly interested in indicators of liquidity, because they show the ability of a company to quickly generate the money to pay the outstanding debt
When you acquired debt on your company before making it an LLC are you responsible for the debt after the company has been dissolved?
Yep....It is still your responsibility to pay your debts...
How can I call to lower my credit card debt?
You can consolidate your loans, which is basically filing for a new loan to pay off your debt, at a lower rate an interest that meets your ability to pay.
What is a junk debt?
Traditionally, "junk" debt is considered a loan to a corporation that has high interest rate on the money being borrowed. Sometimes this interest is quite high- 14-18%. Junk debt financing was a major financing tool in LBOs (Leveraged Buyouts) and other corporate takeovers. The amount of junk debt is contingent on future cash flows of the company and its ability to service the debt (pay the annual interest). The junk debt has to be an integral part of the acquisition, restructuring and strategic plan for the company. The company can service its debt but eventually it will need to paid off, or pay down the debt, or restructure the debt. All is contingent on future sales and earnings and how the management (usually new) handles these particular hurdles.
