In class your instructor said that creditor obligations have finite lives, but a corporations obligations to its

Question:

In class your instructor said that “creditor obligations have finite lives, but a corporation’s obligations to its shareholders extend over the company’s indefinite life.”

Required

Explain, in your own words, what your instructor meant by this statement.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

See More Books

Question Posted: Jul 26, 2019 06:49 AM

See More Questions

The current conceptual distinction between liabilities and equity defines liabilities independently of assets and equity, with equity defined as a residual amount. The present proliferation of...
Domestic Transfer and Storage is a large trucking company headquartered in the Midwest. Rapid expansion in recent years has been financed in large part by debt in a variety of forms. In preparing the...
Domestic Transfer and Storage is a large trucking company headquartered in the Midwest. Rapid expansion in recent years has been financed in large part by debt in a variety of forms. In preparing the...
The accounting records of Shumway Ag Implement show the following data. Determine the cost of goods sold during the period under a periodic inventory system using (a) the FIFO method, (b) the LIFO...
Determinants of Elementary Matrices Find the determinants for each of the elementary matrices (Sec. 3.3, Problems 40 and 41) fanned by the elementary row operations on the 3 x 3 identity matrix I,...
Colombia Textiles began operations several years ago. Its post-closing trial balance at December 31, 2023, is shown below (with accounts listed in alphabetical order): 1 Assume all accounts have a...
Consider the following cash flow profile, and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically...
Echo Ridge Homes manufactures prefabricated chalets in Colorado. The company uses a perpetual inventory system and a job cost system in which each chalet is a job. The following events occurred...
Step 3: Using the Price and Total Quantity Demanded data from the table above, graph the demand curve on the axes provided (be sure to provide numbers on the axes for price and quantity demanded)....
Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, the company provides services of $403,000 on account. Of this amount,...
Windmere Corporations statement of financial position at December 31, 2020, appears as follows: Cash ........................................................................ $ 63,000 Other current...
You are studying with some classmates and are reviewing each others responses to the following question: In an ideal world, what features would an investor prefer in the preferred shares they invest...
Earth's orbit around the sun is an ellipse of eccentricity 0.0167 and major diameter 185.8 million miles. Find its perihelion.
The outbreak of the COVID-19 late in 2019 and the resultant economic and social crisis that followed has shone light on the gap between science communication and the effectiveness of such...
7. Calculate total sales for each of the truck locations. a. Enter the word Total in cell A7. b. Enter a SUM function in cell B7 to calculate the total of cells B4:B6. C. Use AutoFill to copy the...
Can I get help with implementation in java #classs 8puzzle.java package project; import java.io.FileNotFoundException; public class EightPuzzle { /** * This static method solves an 8-puzzle with a...
Carolyn Anderson suffered injuries when she slipped and fell while running across the bathroom floor at the Black Angus restaurant.... The Black Angus lounge sponsored a series of scavenger hunts "as...
A manufacturing problem caused VTN = 0.8 V in- stead of 0.6 V in the inverter in Fig. P6.57. What are the new values of VH, VL, and power dissipation? (b) Repeat for VTN = 0.4 V. +3.3 V ML 1/1/1 VI...
One of MowTown Manufacturing's products is a small lawnmower. Two processing departments are involved in the mower's production. The deck is assembled in one department, and a second department...
The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot...
Mega Manufacturing has calculated the following financial ratios, based on the companys comparative financial statements for 2024 and 2023: Required Briefly explain what each ratio indicates, and...
Determining missing financial statement information Required Determine the four missing amounts using financial statement relationships. Revenues Expenses Net income Dividends declared during the...
Determining missing financial statement information Required Determine the four missing amounts using financial statement relationships. Revenues Expenses Net income Dividends declared during the...
As a precaution, the levers on gasoline pumps in many provinces in Canada must be manually operated at all times. One of the reasons for this is especially relevant in the winter time because the...
7. A transformer core is shown in cartoon form in Figure 8.26. This is made up of, perhaps implausibly, 29 gage M-36 laminations: the same sort of material described by Figures 8.19 and 8.20. Assume...
2. For a lamp that has a total luminous flux, of 4.5104 lm and total radiant flux, of 300 W, (a) what is the overall luminous efficiency, K for this lamp? (b) if this lamp has a luminous intensity of...

In class your instructor said that creditor obligations have finite lives, but a corporations obligations to its

Question:

Step by Step Answer:

Obligations to creditors are finite as the borrowed fun...View the full answer

Understanding Financial Accounting

Students also viewed these Business questions