Assume that a corporation needs to enter the private debt market to raise funds for plant expansion.

Question:

Assume that a needs to enter the private debt market to raise funds for plant expansion. The expects debt covenants to place restrictions on the levels of its current ratio and total-liabilities to assets ratio. Considering the accounts that comprise these ratios, give examples of accounting estimates, accounting judgments, and structured transactions that the lender should examine closely?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...