0
What else can I help you with?
What is meant by interpretation of financial statement?
Interpretation is purely a synonym for understand and it is the ability to be able to comment on the financials and make future business decisions from that information.
What is called when a company's liabilities exceed its assets?
When a company's liabilities exceed its assets, it is referred to as being "insolvent." This situation indicates that the company may not be able to meet its financial obligations as they come due, which can lead to bankruptcy proceedings. Insolvency can be a critical warning sign of financial distress for a business.
What is called when a Company liabilities exceed assets?
When a company's liabilities exceed its assets, it is referred to as being "insolvent." This situation indicates that the company may not be able to meet its financial obligations as they come due. Insolvency can lead to bankruptcy if not addressed, as it signifies that the company’s financial health is critically compromised.
What is an impaired account?
An impaired account refers to an account that is considered to have a reduced value due to the likelihood that the borrower will not be able to meet their financial obligations, such as repaying a loan. This impairment may arise from factors like financial difficulties, bankruptcy, or significant changes in the borrower's circumstances. In accounting terms, impaired accounts often require a write-down or provision to reflect the expected losses on the balance sheet. As a result, they can impact an organization's financial health and profitability.
What is financial control?
able to judge where to pay & not pay
Which type of financial ratio statement is used to judge how well an organization will be able to meet its short term financial obligations?
quick ratio
Financial stability is when you?
Financial stability is achieved when an individual or organization has a consistent income that covers expenses, maintains manageable levels of debt, and has savings for emergencies and future goals. It involves being able to meet financial obligations without relying on credit or assistance from others.
What is A financially stable person is able to?
A financially stable person is able to meet their financial obligations consistently, save and invest for the future, and handle unexpected expenses without going into debt.
What is a Solvent company?
A solvent company is one that is financially stable and able to meet its financial obligations, including payment of debts and other liabilities. A solvent company's assets typically exceed its liabilities, indicating a healthy financial position.
What does it mean when a company is solvent and how does it impact its financial health?
When a company is solvent, it means that its assets are greater than its liabilities, allowing it to meet its financial obligations. This indicates that the company is financially healthy and able to continue operating without the risk of insolvency or bankruptcy.
What happens if a bank defaults?
If a bank defaults, it means that the bank is unable to meet its financial obligations and may not be able to repay its depositors or creditors. This can lead to a financial crisis, loss of confidence in the banking system, and potentially require government intervention to stabilize the situation.
What is meant by interpretation of financial statement?
Interpretation is purely a synonym for understand and it is the ability to be able to comment on the financials and make future business decisions from that information.
What is the term for financially able to pay?
The term for being financially able to pay is "solvent." A solvent individual or entity has sufficient assets or income to meet their financial obligations. This contrasts with being insolvent, where one cannot meet their debts as they come due.
Why would a financial manager want to slow down disbursements?
To create a float, or the difference between a firms actual money on hand, and the amount credited to the firm by the bank. Thereby being able to meet other financial obligations without actually having the funds to do so.
What is called when a company's liabilities exceed its assets?
When a company's liabilities exceed its assets, it is referred to as being "insolvent." This situation indicates that the company may not be able to meet its financial obligations as they come due, which can lead to bankruptcy proceedings. Insolvency can be a critical warning sign of financial distress for a business.
Why are commercial banks interested in the financial statement?
Commercial banks are interested in financial statements so they can see that how is business performing so that they can invest money in it as well as if business wants credit from bank is business will be able to return it back or not.
What is balance sheet and briefly explain the purpose?
What is a Balance Sheet * In financial accounting, a balance sheet or statement of financial position is a summary of the value of all assets, liabilities and Ownership equity for an organization or individual on a specific date, such as the end of its financial year. * nIt is also described as a "snapshot" of a company's financial condition on a given datePurpose * nTo identify potential liquidity problems* ** Company's ability / inability to meet financial obligations** nthe degree to which a co is leveraged or indebted* nWorking capital* ** nHow strong a co is to meet its short term liabilities* nBankruptcy* ** nWill the co be able to meet its payments* nStanding vis-à-vis its peers
