0
What a firm owes its creditors is referred to as its liabilities. These liabilities represent legal obligations that the firm must fulfill, typically involving the repayment of borrowed funds or outstanding debts. They can include loans, Accounts Payable, and other financial commitments. Understanding a firm's liabilities is crucial for assessing its financial health and stability.
What else can I help you with?
Which group of ratios might be most interesting to potential creditors of a firm?
leverage ratios
Do bondholders represent creditors of a firm?
Yes, bondholders are indeed considered creditors of a firm. When a company issues bonds, it borrows money from investors, promising to pay back the principal amount along with interest over time. As creditors, bondholders have a legal claim to the company's assets in the event of bankruptcy, ranking above equity holders in the capital structure during liquidation.
A firm's accounts payable ledger may include accounts for creditors who are not suppliers of merchandise True or False?
fales
What are non trade creditors?
Non-trade creditors are entities or individuals to whom a business owes money that is not directly related to its core operations or purchase of goods and services. This can include loans from financial institutions, accrued expenses like wages or taxes, and amounts owed for services not directly tied to inventory or production. Unlike trade creditors, who are typically suppliers of goods and services, non-trade creditors may involve various financing arrangements and obligations.
What is expense creditors?
Expense creditors refer to entities or individuals to whom a business owes money for incurred expenses, typically related to operational costs. This may include suppliers, service providers, or contractors that have provided goods or services on credit. These liabilities are recorded on the balance sheet as current liabilities, reflecting the obligation to pay these creditors in the near term. Managing expense creditors is essential for maintaining good relationships and ensuring smooth business operations.
Which of these can occur when a person owes more money than he or she can earn or pay to creditors?
Bankruptcy.
Which of these can occur when a person owes more money than he or she earn or pay to creditors?
bankruptcy
Which can occur when a person owes more money than he or she can earn or pay to creditors?
bankruptcy
Who has the first claim to the profits and assets of a firm?
Creditors.
In the event of firm dissolution the first claims on its assets belongs to?
In the event of firm dissolution, the first claims on its assets belong to secured creditors. These are lenders or creditors who hold collateral against their loans, ensuring they are paid first. Following secured creditors, the order of claims typically proceeds to unsecured creditors, and finally, any remaining assets are distributed to the owners or shareholders of the firm.
What can occur when a person owes more money than he or she can earn or pay to creditors?
A person can lose everything he or she owns when creditors move in to collect what they are owed. A person might have to go through bankruptcy.
What can occur when a person owes more money than he or she earns or pay to creditors?
A person can lose everything he or she owns when creditors move in to collect what they are owed. A person might have to go through bankruptcy.
What can occur when a person owes more money than he or she can earn or pay creditors?
A person can lose everything he or she owns when creditors move in to collect what they are owed. A person might have to go through bankruptcy.
Which automobile company owes its origins to a firm set up by Sanjay Gandhi?
Maruti Udyog
After a person dies can their creditors apply that person life insurance to the debts that person owes?
Only if he touched your mom Hell yeah!
The primary concern of creditors when assessing the strength of a firm is the firms?
short-term liquidity
Which group of ratios might be most interesting to potential creditors of a firm?
leverage ratios
