BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Long Term Sources consist of?
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Net worth + Term Liabilities
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Net Worth
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Current Liabilities + Term Liabilities
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Total Liabilities
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Explanation:
Detailed explanation-1: -Long-Term Liabilities: Net Worth: Long-Term Liabilities/Net Worth, a measure of coverage of long-term debt (>1 year). Loans/Notes Payable: Net Worth: The Loans/Notes Payable portion of current liabilities divided by Net Worth, a measure of debt coverage.
Detailed explanation-2: -Long-term liabilities are typically due more than a year in the future. Examples of long-term liabilities include mortgage loans, bonds payable, and other long-term leases or loans, except the portion due in the current year. Short-term liabilities are due within the current year.
Detailed explanation-3: -Long term loan is a long term liability.
There is 1 question to complete.