Answer is Long term funds.
Capital assets are fixed assets employed in the business and are permanent assets. These are generally financed through long term sources like shares, debentures, bank loans, etc.
Capital assets are usually financed with Multiple Choice short-term funds. long-term funds. permanent funds self-liquidating funds
Temporary current assets are those assets that are Multiple Choice Capital assets. Semi-permanent. Self-liquidating Permanent assets When retained earnings are not sufficient to cover the need for investment in current assets, firms seek to use all of the following methods except: Multiple Choice trade credit bank loans short-term securities. selling off inventories We were unable to transcribe this imageUsually yield curves arebut during peak periods of economic expansion yield curves may be Multiple Choice upward sloping, downward sloping downward sloping:...
Generally__________________ is financed by short-term financing. Seasonal working capital Permanent working capital Plant and machinery Land
Positive working capital for a firm implies that current assets are partially financed by long-term financing fixed assets are partially financed by current liabilities current assets are completely financed by current liabilities firm has no short-term debt
Long-term investments: Multiple Choice Are current assets. Can include funds designated for a special purpose, or investments in land not used in the company’s operations. Must be readily convertible to cash. Are expected to be converted into cash within one year. Include only equity securities.
Long-term debt to be paid from proprietary funds is reported as a liability in: Multiple Choice neither the proprietary fund Statement of Net assets (or Net Position) nor the government-wide Statement of Net assets (or Net Position). the government-wide Statement of Net assets (or Net Position). the proprietary fund Statement of Net assets (or Net Position). both the proprietary fund Statement of Net assets (or Net Position) and the government-wide Statement of Net assets (or Net Position).
A savings and loan association has long-term fixed-rate mortgages financed by short-term funds. It hedges by selling Treasury bond futures. If interest rates decline, and many mortgages are prepaid Group of answer choices: 1)the gain on the futures contracts offsets the loss on the mortgages. 2)the gain on the mortgages offsets the loss on the futures contracts. 3)the gain on the futures contracts more than offsets any unfavorable effects on mortgages. 4)a loss on the futures contracts more than offsets...
Question 1 a) Is the most advantageous amount for the firm to order each time b) Will increase with higher storage costs c) Will increase with higher ordering costs d) Determines how much safety stock a company should hold in inventory Question 4 Self-liquidating current assets should generally be financed by a) Long-term funds b) Short-term funds c) Borrowed funds d) Internally generated funds Question 5 In managing collections and disbursements of...
Liquidating Partnerek Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Morrison had capital accounts of $23,000 and $85,000, respectively. The partnership assets were sold for $42,000. The partnership had no liabilities. Short and Morrison share income and losses equally. Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Morrison, assuming Short is unable to satisfy the deficiency,
The expectations hypothesis explains yields on securities as a function of interest rates: Multiple Choice short-term; long-term long-term; short-term short-term; short-term long-term; long-term
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Russo had capital accounts of $22,000 and $83,000, respectively. The partnership assets were sold for $37,000. The partnership had no liabilities. Short and Russo share income and losses equally Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Russo, assuming Short is unable to satisfy the deficiency.