• A bilateral netting agreement enables two counterparties in a financial contract to offset claims against each other to determine a single net payment obligation that is due from one counterparty to the other, meaning that the payables and receivables are netted off. Such a provision would allow companies, especially banks, to set aside far lesser capital based on their net positions rather than gross settlements, where the entire amount due must be covered.
Classify the following under the respective head in balance sheet:
Items:
I. Current maturities of long-term debt
Time of supply means
Calculate interest coverage ratio from the following:
Net Profit after tax = 120000, tax rate = 50%, long term debt @10% = 1500000
Match the following:
