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 othe