Is a debt considered to be an asset, in your black art.
Fat Secret Agent
Is a debt considered to be an asset, in your black art.
Dexter's Apprentice.
All spelling mistakes and grammatical errors in my post's are intentional.
Fat Secret Agent
Does that mean "yes" sorry but I'm not big into the black arts.
Dexter's Apprentice.
Sorry I didn't understand it either,thought it might enlighten you a bit.
All spelling mistakes and grammatical errors in my post's are intentional.
Fat Secret Agent
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If you owe Ben Afleck 2 gran it is not an asset.
Fat Secret Agent
Cheers, that's cleared it up.
Stand down bankers.
mostly harmless
Are you the one in debt, or is someone in debt to you?Originally Posted by JPaul
Fat Secret Agent
Neither.Are you the one in debt, or is someone in debt to you?
It's in relation to a thing.
Looking for loopholes
Debt does appear on the Balance Sheet but as a liability. It is part of the funding of the business but it cannot be shown as an asset otherwise it will muck up your gearing ratio (how much you have borrowed against assets).
Some companies tried to get really cute with debt a few years ago and put them under assets and amortised them. It made them look more liquid than they really were. They all went spectacularly tits up. I think they were largely responsible for the Cadbury Report. Coloroll the wallpaper crowd were culprits of this as I recall. Everything looked all right on the books but when interest rates peaked in the mid 90s they couldn't service the debts. A kind of mini Enron.
Not sure if that helps really
Cogito cogito ergo cogito sum
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Sorry I didn't understand it either,thought it might enlighten you a bit.
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