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True or False Assets such as the quality of a firms employees are considered tangible in nature and thus have substantial value as collateral?
true
Can leasehold improvement be used as collateral?
Yes, leasehold improvements can be used as collateral for financing, but it often depends on the specific terms of the lease and the lender's policies. Lenders may assess the value of the improvements and their potential to generate income when determining collateral eligibility. However, since leasehold improvements are tied to a leased property, their value as collateral can be limited compared to owned assets. It's essential to consult with a financial advisor or lender for specific guidance in this area.
What is the meaning of surplus on revaluation of fixed assets?
While in the process of revaluation of assets and liabilities, if the value of some assets increase more than the decrease in the value of some fixed assets then the difference of this increase and decrease if positive is called surplus on revaluation of fixed assets.
Does depreciation increase total assets?
No, depreciation does not increase total assets; rather, it reduces the book value of tangible assets on the balance sheet over time. As an asset depreciates, its value is systematically expensed, which reflects the wear and tear or obsolescence of the asset. This reduction in asset value is matched by an increase in accumulated depreciation, but it does not affect the total assets figure. Overall, depreciation is an accounting method that allocates the cost of an asset over its useful life, leading to a decrease in the asset's net value.
Why does net asset value of a business not change when assets are purchased on credit?
The net asset value of a business remains unchanged when assets are purchased on credit because the increase in assets is offset by an equal increase in liabilities. When a business acquires an asset, it adds to its total assets, but it simultaneously incurs a liability equal to the purchase price, reflecting the obligation to pay for the asset in the future. Thus, the overall net assets, calculated as total assets minus total liabilities, remain the same.
Funds or property that have value in meeting debts are called?
Funds or property that have value in meeting debts are called collateral. A+ answer- assets
True or False Assets such as the quality of a firms employees are considered tangible in nature and thus have substantial value as collateral?
true
What is the net value of fixed assets called?
value
What Items of value that you own called?
assets
What is the formula for total value of a company?
Total Assets - Total Liabilities = Net Worth
What is a company's book value of pledged assets divided by the book value of its secured liabilities called?
Pledged assets to secured liabilities.
How do you measure NPA?
Non-performing assets (NPAs) are typically measured as a percentage of the total assets held by a financial institution. This ratio is calculated by dividing the total value of NPAs by the total value of assets. The higher the NPA ratio, the greater the risk exposure for the institution.
Does net worth equal total assets plust liabilies?
Yes, Net worth is the residual value after utilizing all assets and paying off all liabilities so it is the actual value of business which is the actual benefit to the owners of business.
How can one determine the net assets of a company or organization?
To determine the net assets of a company or organization, you subtract its total liabilities from its total assets. This calculation gives you a measure of the organization's financial health and value.
Does total debt equal total assets minus total equities?
Yes, the accounting equation, total assets = total liabilities + total equity, may be rewritten to determine total debt as being equal to total assets - total of owner's equity. Simply stated, the total assets (the firm's value) is broken up between total debt (what you owe) and owner's equity (what you own).
How do you figure out the value of assets in place?
Value of assets in place = Value of investment in existing assets + Net present value of assets in place
What is the meaning of surplus on revaluation of fixed assets?
While in the process of revaluation of assets and liabilities, if the value of some assets increase more than the decrease in the value of some fixed assets then the difference of this increase and decrease if positive is called surplus on revaluation of fixed assets.
