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Tag: debt

General Partnership

See Also: Sole Proprietorship Partnership Limited Partnership S Corporation Tips on How to Manage your Lawyer General Partnership A general partnership, defined as a private business owned by two or more general partners, is one of the most common legal entities which do business. Furthermore, it is unincorporated. General Partnership Explanation A general partnership, explained

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Financial Instruments

See Also: What is a Bond Required Rate of Return Return on Asset Commercial Paper Hedging Risk Histogram Financial Instruments and Securities Financial instruments are contracts that represent value. They come in many varieties. In fact, financial managers and bankers have a lot of leeway in creating and issuing financial instruments. The Securities and Exchange

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FASB Lease Accounting Changes

See Also: Capital Lease Agreement Lease Agreements FASB Lease Accounting Changes A change in accounting rules implemented by The Financial Accounting Standards Board (FASB) has led to FASB lease accounting changes. Furthermore, the proposed lease accounting changes will bring a large amount of debt onto the balance sheets of companies that have large operating lease

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Equity Multiplier Definition

See Also: Define Leverage (Finance) Operating Leverage Long Term Debt to Total Asset Ratio Analysis Debt Ratio Analysis Equity Multiplier Definition The equity multiplier definition, also referred to as leverage of a company, is the amount of debt and other liabilities a firm has assumed as a percentage of the total assets on average throughout

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Debt to Equity Ratio

See Also: Financial Ratios Debt Ratio Debt Service Coverage Ratio (DSCR) Free Cash Flow Debt to Equity Ratio Definition The debt to equity ratio definition is an indication of management’s reliance to finance its asset on debt rather than on equity. It measures a company’s capacity to repay its creditors. This ratio varies with different industry and company. Comparing

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Debt Service Coverage Ratio

See also: Operating Income (EBIT) Financial Ratios EBITDA Definition Loan Agreement Time Interest Earned Ratio Analysis Net Income Benchmarking Fixed Charge Coverage Ratio Times Interest Earned Ratio Free Cash Flow Debt Service Coverage Ratio The debt service coverage ratio (DSCR) is a financial ratio that measures the company’s ability to pay their debts. In broad terms the

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Debt Ratio Analysis

See Also:Financial RatiosDebt to Equity RatioCurrent RatioDebt Service Coverage Ration (DSCR)Time Interest Earned Ratio Analysis Debt Ratio Analysis Definition Debt ratio analysis, defined as an expression of the relationship between a company’s total debt and assets, is a measure of the ability to service the debt of a company. It indicates what proportion of a company’s

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Current Ratio Definition

See Also: Balance Sheet Current Assets Current Liabilities Working Capital Analysis Quick Ratio Analysis Net Cash Current Ratio Definition The current ratio definition, defined also as the working capital ratio, reveals company’s ability to meet its short-term maturing obligations. Values for the current ratio vary by company and industry. In theory, the larger the ratio

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Current Liabilities

See Also: Balance Sheet Current Assets Fixed Assets Fixed Assets – NonCurrent Assets Current Liabilities Current liabilities is a category of liabilities on the balance sheet. The category also consists of debts and other financial obligations expected to be paid or settled within one year or within one normal operating cycle of the business (whichever

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Credit Life Insurance

See Also: Employee Health Insurance Plan Third Party Insurance Personal Credit for Commercial Loan How to avoid additional insurance premiums Insulate Your Company from Rising Health Insurance Costs Credit Life Insurance Definition Individuals use credit life insurance policies to cover the outstanding debt on a loan. As the loan decreases, so does the plan until

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Collateralized Debt Obligations

See Also: Letter of Credit Investment Banks Double Entry Bookkeeping Current Expenditures Accounts Payable Collateralized Debt Obligations Definition A collateralized debt obligation derivative, or CDO, is an investment grade debt instrument backed by collateral consisting of loans or other debt instruments. The collateral typically consists of bonds with varying degrees of credit quality and risk.

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Bankruptcy Information

See Also: Chapter 7 Bankruptcy Chapter 11 Bankruptcy Bankruptcy Code Chapter 13 Bankruptcy Bankruptcy Costs Chapter 12 Bankruptcy Courts – Bankruptcy Bankruptcy Information Bankruptcy is the legal condition of being unable to repay debts. It can apply to individuals or organizations. There are two types of bankruptcy: voluntary and involuntary. Voluntary bankruptcy occurs when the debtor,

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