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