Series 26: Exercise

Exercise

Complete the sentence by selecting the correct term from the word bank:

Net worth

Liabilities

Owners’ equity

Liquid assets

Subordinated debt

Non-allowable assets

Assets

1. 1. ___are illiquid assets, assets that cannot be quickly sold at fair market value.
2. 2. ___ are the obligations of a firm to outsiders.
3. 3. Assets that can quickly be converted to cash are called ___.
4. 4. ___is the difference between assets and liabilities.
5. 5. ___are what a firm owns.
6. 6. ___is comprised of debt that ranks below other debt in its claims on assets or earnings during bankruptcy or liquidation.
7. 7.