Question

1)What does it mean to list assets according to liquidity? Give examples. 2)What are the two...

1)What does it mean to list assets according to liquidity? Give examples.
2)What are the two major forms of debt financing available to a firm? Give expamples

Homework Answers

Answer #1

1]

In a balance sheet, the assets are listed in the order of their liquidity, the most liquid assets being listed first, and the least liquid assets being listed last.

Liquidity is a measure of how quickly an asset can be converted into cash without significant loss in value.

Thus, in a balance sheet, assets are usually listed in the following order :

  • Cash and cash equivalents
  • Inventory
  • Receivables
  • Prepaid expenses
  • Fixed assets
  • Intangibles
  • Goodwill

2]

Two major forms of debt financing are bank loans and bonds.

A bank loan is debt financing obtained from a bank.

Bonds are debt financing obtained by issuing debt securities to the public

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1-Give two examples of an Invitation to Treat? 2-Give two examples of what could be forms...
1-Give two examples of an Invitation to Treat? 2-Give two examples of what could be forms of Consideration? 3-Explain how the formula of Contract Formation plays out in a Tendering Situation.
What does it mean for a set A to be compact in R? Give two examples...
What does it mean for a set A to be compact in R? Give two examples of compact sets.
1) Define Prebiotic and Probiotic and list two examples of each. 2) List two of the...
1) Define Prebiotic and Probiotic and list two examples of each. 2) List two of the diets that are designed to lose weight. What are their pros and cons? 3) List two Food items that might contain carcinogens. 4) List one example of a Mineral and another example of a vitamin that are antioxidants 5) List one example of a Mineral and another example of a vitamin that are important for our immune system 6) What are the teratogens? Please...
1. Describe and give examples of the bryophytes 2. list the features that distinguish the animal...
1. Describe and give examples of the bryophytes 2. list the features that distinguish the animal kingdom from other kingdoms
What does it mean by “unique targeting” and “group targeting”?  Give examples of how they are employed...
What does it mean by “unique targeting” and “group targeting”?  Give examples of how they are employed in real life. What are the disadvantages of each strategy? Use examples to support your ideas.
What does the term current liabilities mean? What assets are usually used to settle current liabilities?...
What does the term current liabilities mean? What assets are usually used to settle current liabilities? Give examples.
2. What are the two reasons liquidity risk arises? How does liquidity risk arising from the...
2. What are the two reasons liquidity risk arises? How does liquidity risk arising from the liability side of the balance sheet differ from liquidity risk arising from the asset side of the balance sheet? What is meant by fire-sale prices?
Give me the short answer, List the 4cs - and tell what does it mean in...
Give me the short answer, List the 4cs - and tell what does it mean in "general"/non economic terms.
Assume that Atlas Sporting Goods Inc. has $1,050,000 in assets. If it goes with a low-liquidity...
Assume that Atlas Sporting Goods Inc. has $1,050,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 15 percent, but with a high-liquidity plan the return will be 12 percent. If the firm goes with a short-term financing plan, the financing costs on the $1,050,000 will be 9 percent, and with a long-term financing plan, the financing costs on the $1,050,000 will be 10 percent. a. Compute the anticipated return after...
Assume that Atlas Sporting Goods Inc. has $1,020,000 in assets. If it goes with a low-liquidity...
Assume that Atlas Sporting Goods Inc. has $1,020,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 12 percent, but with a high-liquidity plan the return will be 9 percent. If the firm goes with a short-term financing plan, the financing costs on the $1,020,000 will be 6 percent, and with a long-term financing plan the financing costs on the $1,020,000 will be 7 percent. a. Compute the anticipated return after...