Ethical ramifications of re-classifying investments

Assignment Help Finance Basics
Reference no: EM13749684

The current ratio measures the degree to which current assets cover current liabilities. A high ratio indicates a good probability that the company can retire current debt. When long term debt exceeds stockholder's equity, the current ratio will fall. What effect will reclassifying a long term investment into cash within one year have on the current ratio? Is a firm's true financial position stronger as a result of reclassifying investments? What are the ethical ramifications of re-classifying investments? Give an example of when reclassifying a long term investment as a short term investment makes financial sense for the company.

Reference no: EM13749684

Questions Cloud

Write a research paper on stem cell research legislation : Write a Research paper on stem cell research legislation and the related legal issues: What isthe history of stem cell research legislation in the United States?
What professional development do your coders need : What professional development do your coders need or want in the areas of topics like HIM, electronic health records, general computer skills, or supervisory or interpersonal skills
Startup costs related to his new business : If you were a business consultant and a customer was seeking advice on whether he obtain a bank loan or seek investors to fund the $100,000 needed for the startup costs related to his new business, what would you suggest?
Explain why people wanted a new constitution : explain why people wanted a new constitution. Next, explain the main elements of the new constitution.Third, explain why people might disagree with the New constitution.
Ethical ramifications of re-classifying investments : What are the ethical ramifications of re-classifying investments? Give an example of when reclassifying a long term investment as a short term investment makes financial sense for the company.
Developing a research manuscript : What do you believe is the most important consideration when developing a research manuscript? Support your response
Define the following terms- data information and knowledge : Several times you have heard of people talking about data and information, and in many situations they are using the terms in the wrong context. Take this opportunity to define the following terms: data, information, and knowledge
Describe the historical development of the us court system : Write a 200- to 300-word response in which you describe the historical development of the U.S. court system. How does the dual court system operate in the United States?
Explain motives of diplomats who framed treaty of versailles : Explain the motives of the diplomats who framed the Treaty of Versailles. Could World War I have been averted?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Describe analysis of the intercompany financials

Describe Analysis of the intercompany financials with liquidity ratios and how the two companies are doing and what they could do to improve themselves

  Rayburn manufacturing-capital structure-repurchase of stock

Rayburn Manufacturing is currently an all-equity firm. The firm's equity is worth $2 million. The cost of that equity is 18 percent. Rayburn pays no taxes.

  What is the preemptive right of common stockholders in what

what is the preemptive right of common stockholders? in what type of company is the preemptive right important?

  What dividend did the stock pay

A financial adviser claims that a particular stock earned a total return of 10% last year. During the year the stock prices rose from $30 to $32.50. What dividend did the stock pay?

  Country risk analysis and possible exit strategies

Describe one exit strategy that an organization can use when things go wrong in a foreign country? What are some of the issues which might prompt the implementation of an exit strategy?

  A given a description of a new business new product service

a. given a description of a new business new product service or project develop present and defend the budget.b.

  What is the effective annual percentage cost

A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)

  What is the net cost of the machine for capital budgeting

the campbell company is evaluating the proposed acquisition of a new milling machine. the machines base price is

  Abrose plans to sell new common stock in the amount of

at year-end 2008 total assets for ambrose inc. were 1.2 million and accounts payable were 375000. sales which in 2008

  What are some considerations for companies in choosing

Offer three reasons with full explanation for why it is important for companies to keep a fair portion of their overall asset balance in liquid assets.

  Paul bearer may elect to take a lump-sum payment of 25000

paul bearer may elect to take a lump-sum payment of 25000 from his insurance policy or an annuity of 3200 annually as

  The preferred stock of ciso inc pays an annual dividend of

the preferred stock of ciso inc. pays an annual dividend of 6.50 a share and sells for 48 a share. what is cisos cost

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd