Debts to be paid more than one year from now are claims against the firms assets:in other words, they are long-term liabilities. These claims are from ..... who have provided capital to the firm but whose entire repayment is not due during the coming year or operating cycle.

FINANCIAL MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Debts to be paid more than one year from now are claims against the firm’s assets:in other words, they are long-term liabilities. These claims are from ____ who have provided capital to the firm but whose entire repayment is not due during the coming year or operating cycle.

A	banks and bondholders
B	banks and stockholders
C	stockholders and bondholders
D	all long-term lenders

Explanation:

Detailed explanation-1: -Debts to be paid more than one year from now are claims against the firm’s assets: in other words, they are long-term liabilities.

Detailed explanation-2: -Understanding Long-Term Debt Long-term debt is debt that matures in more than one year.

Detailed explanation-3: -Short-term debt, also called current liabilities, is a firm’s financial obligations that are expected to be paid off within a year. Common types of short-term debt include short-term bank loans, accounts payable, wages, lease payments, and income taxes payable.

Detailed explanation-4: -Solvency is the ability of a company to meet its long-term debts and other financial obligations. Solvency is one measure of a company’s financial health, since it demonstrates a company’s ability to manage operations into the foreseeable future. Investors can use ratios to analyze a company’s solvency.

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BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT