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In an asset purchase, liabilities are typically not transferred to the buyer. The buyer only acquires the specific assets agreed upon, and the seller remains responsible for any existing liabilities.

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4mo ago

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When Maturity GAP is positive?

Maturity of asset in portfolio is larger than the maturity of liabilities in the portfolio


What is an asessment of personal assets and liabilities?

An assessment of personal assets and liabilities lists all your assets (like your home, car, money in the bank, etc.) and your liabilities (debt in the form of loans, house mortgage, etc.). The asset's values are totalled and the liabilities are totalled. Comparing you total assets and total liabilities will show your financial situation.


What are Assets and liabilities?

Asset- An asset is something that the company owns. Examples of this are equipment, land, buildings, supplies, and cash. It can also include money owed to the company, and accounts receivable. Liabilities- A liability is something that the business owes to someone else. Some examples of this are loans and accounts payable.


Difference between net worth and working capital?

Working Capital is the difference between Current Assets and Current Liabilities.Net Worth is Total Assets -Total Liabilities current asset-current Liability=Working Capital working Capital Plus+Fixed Asset-LongTerm Liabilities = Net Worth in another word: (Current Asset+Fixed Asset)-(current Liability+Long Term Liability)= Net Worth Now you got it ?


What does the term finance lease mean?

The Term "Finance Lease" means that the customer will pick an asset such as a vehicle and the lender will purchase the asset. The customer will be able to use the asset while they pay installments or rental fees, with the option to purchase the asset.

Related Questions

How do you calculate purchase consideration under net asset method?

under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate


Is accrued expenses payable is an asset or liabilities?

Liabilities


Petty cash in till asset or liabilities?

asset


Other terms of asset and liabilities?

asset= strengths liability= weaknessess


What will increase one asset and decrease another asset without affecting liabilities or owner's equity?

Many cash transactions result in changes between asset accounts, such as the receipt of an accounts receivable, the outright purchase of an asset or the payment of a pre-paid expense.


Common stock is assets or liabilities?

asset


Accumulated depreciation in Accounting?

Accumulated depreciation is contra account to fixed asset to show how much amount of depreciation is charged till date from date of purchase and it is shown in balance sheet in liabilities side or as a deduction from fixed asset in asset side.


Is fixed deposits is an asset or liabilities?

Liability


How rent paid in advance is treated in accounting equation?

If you are the payer Increase in Prepaid Expenditure- Asset Decrease in Bank - Asset Equity= Asset- Liabilities 0 = +/- - 0 If you are the payee Increase in Income Recieved in Advance - Liability Increase in Bank - Asset Equity= Asset- Liabilities 0 = + - +


Is asset is cash?

Cash is an asset because it is the most liquid asset that is owned by a company that can be used to paid expenses or current liabilities.


How does vat affect the accounting equation?

The VAT can affect the accounting equation in two different ways. The accounting equation is ASSET=CAPITAL+LIABILITIES So, if VAT is OWED from HMRC (receivable) it will be an asset, so the asset will increase and the Capital will increase as well. ASSET+X=CAPITAL+X+LIABILITIES, where X is the amount of VAT received. If VAT is owed TO HMRC (payable), then the liabilities will increase, which means that the capital will decrease with the same amount. ASSET=(CAPITAL-Y)+(LIABILITIES+Y) where Y is the amount of VAT to be paid.


Are accounts receivable assets or liabilities?

Asset. It is cash that you are owed. Accounts receivable is considered a short term asset.