Asked by Jesus Armenta on Jun 29, 2024
Verified
How far into the future the obligations of a company will come due refers to the company's
A) capital structure.
B) maturity structure.
C) solvency.
D) liquidity.
Maturity Structure
The classification of a portfolio or entity's liabilities based on the time frame until those obligations mature or are due for payment.
Obligations
Duties carried by entities or individuals that arise from contractual agreements, law, or regulation requiring them to act in a certain manner.
Capital Structure
Refers to the mix of different types of debt and equity that a company uses to finance its overall operations and growth.
- Assess the indicators of liquidity and financial flexibility, recognizing their significance in reflecting a company's potential to manage its liabilities and capitalize on investment prospects.
Verified Answer
GK
Given KumakoJun 30, 2024
Final Answer :
B
Explanation :
The obligations of a company coming due in the future refers to its maturity structure, which is the schedule of when the company's debts and other financial obligations will come due. The company's capital structure refers to how it has financed its operations, while solvency relates to the company's ability to pay its debts, and liquidity refers to its ability to convert assets into cash quickly.
Learning Objectives
- Assess the indicators of liquidity and financial flexibility, recognizing their significance in reflecting a company's potential to manage its liabilities and capitalize on investment prospects.