Liability

current assets by current liabilities. Current assets Current Ratio = Current Liabilities The current ratio is a measure of firm’s short-term solvency. A ratio of greater than one means that the firm has more current assets than current claims against them Current liabilities. Quick Ratio:…

Since they are not disclosed the companies would opt to go for lease rather than buying the assets and bear the effects of it. This is the main reason why the off balance sheet liabilities were 66 times greater than the debt of the statements. (Hoogervorst, 2016). There are several advantages backing the lease financing: 1. The lease can be easily cancelled at any time prior to the expiry of the lease period. 2. The hassle of owning…

Describe and highlight some of the discrepancies that can appear or deliberately be omitted in these statements. For example the inclusion (or exclusion) of assets, market capitalization, owners’ equity, and particularly (1) non-financial health of the company, (2) what the customers are thinking, and (3) what the competitors are planning. Include examples and if possible, evidence of your own research. Introduction A financial statement is a formal record of all financial activities in a firm…

In forming a limited liability partnership, each partner owes the other partners, as well as the partnership itself, a high level of loyalty, actions of good faith, and fair dealing. Under this duty, each partner will share in all the profits and losses earned by the partnership and no income shall be withheld by any partner. If Edie Fercano wishes to establish a limited liability partnership, but maintain a certain client outside of the partnership interest, she should have specific clauses…

damages from the manufacturer. Often this recovery can occur without proof of negligence on the part of the manufacturer, provided that the injury was not incurred through the direct fault of the user or misuse of the product. During typical products liability litigation, the plaintiff must show that the offending…

Introduction Centro Property Group’s Andrew Scott (CEO), Brian Healey (chairman), Paul Cooper (chairman), Romano Nenna (CFO), non-executive directors Peter Wilkinson, Sam Kavourakis and Peter Goldie, and Jim Hall were sued for $200 million dollar in damages from a class action lawsuit where investors alleged deceptive conduct and breaches. It is broadly perceived that a high level executive - director - ought not just to attend board meetings, but rather partake effectively in the issues of the…

statement is concerned with the fundamental purpose of punishments and the implications for society. The question whether crimes can only be committed, if the defendant has consciously chosen to do so, challenges concepts such as, omissions and strict liability cases. This essay will evaluate whether it is true that a defendant can only be punished if they have consciously committed the wrong, and if not; what are the views which challenge this? The punishment described here is retributive…

FINANCE AND ACOUNTS DEPRTMENT Each company is carried with a cause of being profitable. Cash or capital being a scare in addition to vital aid in the working of any agency desires to accept prime significance. The financial resources were deliberate and managed in a proper and non-stop manner. As most of the maximum crucial choices of a firm are the ones which relate to finance. Finance & debts from an integral a part of any organisation. proper and clean functioning of this segment could be…

too much inventory then there are concerns of storage, obsolescence and spoilage. If there is not enough inventory then the loss of revenue opportunities can arise. Inventory is an important factor to the revenue, shareholder earnings and the tax liability of a company. There are four accounting methods that can be used to manage inventory and the method chosen is dependent on how the costs of the Inventory flow into the Cost of Goods Sold account. The Cost of Goods Sold is the cost of…

requesting spouses in Sec 6015 (f) – equitable relief. Historically, equitable relief allowed taxpayers another qualifying option if unable to meet criteria under Sec 6015 (b) – traditional innocent spouse relief or Sec 6015 (c) – allocation of liability. The changes of equitable relief lie in Rev. Proc. 2013-34, ultimately replace the predecessor, Rev. 2003-61. In attempts to broaden the rules, and ultimately enhance determinacy of…