25 Lecture

1. What is a prospectus? a) A legal document that provides information to potential investors about the securities a company is offering. b) A financial statement showing a company's assets, liabilities, and equity. c) A document used to record all of a company's transactions. Answer: a

2. What are non-current liabilities? a) Obligations that a company is expected to fulfill within one year. b) Obligations that a company is expected to fulfill over a period of more than one year. c) The amount of money that a company owes to its shareholders. Answer: b

3. What does the 4th schedule of a prospectus typically include? a) Details about a company's current liabilities. b) Details about a company's non-current liabilities. c) Details about a company's revenue and expenses. Answer: b

4. Which of the following is an example of a non-current liability? a) Accounts payable b) Short-term loans c) Long-term loans Answer: c

5. Why is information about non-current liabilities important for investors? a) It helps them understand a company's ability to meet its long-term obligations. b) It helps them understand a company's short-term cash flow. c) It helps them understand a company's profit margin. Answer: a

6. What type of information would you find in the 4th schedule of a prospectus? a) Details about a company's current assets. b) Details about a company's non-current assets. c) Details about a company's non-current liabilities. Answer: c

7. Which of the following is an example of a non-current liability? a) Accounts receivable b) Lease obligations c) Inventory Answer: b

8. What is the purpose of a prospectus? a) To provide information to potential investors about the securities a company is offering. b) To provide information to potential customers about a company's products. c) To provide information to potential employees about a company's benefits. Answer: a

9. What is the difference between a current liability and a non-current liability? a) A current liability is an obligation that a company is expected to fulfill within one year, while a non-current liability is an obligation that a company is expected to fulfill over a period of more than one year. b) A current liability is an obligation that a company is expected to fulfill over a period of more than one year, while a non-current liability is an obligation that a company is expected to fulfill within one year. c) There is no difference between a current liability and a non-current liability. Answer: a

10. Which of the following would be included in the 4th schedule of a prospectus? a) Details about a company's short-term debt. b) Details about a company's long-term debt. c) Details about a company's current assets. Answer: b

1. What is the purpose of a prospectus, and why is it important for potential investors?

Answer: The purpose of a prospectus is to provide information to potential investors about the securities a company is offering. It is important for potential investors because it helps them make an informed decision about whether or not to invest in a company. The prospectus provides details about the company's financial health, its business model, and its potential risks and rewards.

2. What are non-current liabilities, and why are they important for a company's financial health?

Answer: Non-current liabilities are obligations that a company is expected to fulfill over a period of more than one year. They are important for a company's financial health because they represent long-term financial commitments that must be met in the future. Non-current liabilities include things like long-term loans, bonds, and leases, and they can have a significant impact on a company's cash flow and ability to invest in future growth.

3. What information is typically included in the 4th schedule of a prospectus?

Answer: The 4th schedule of a prospectus typically includes details about a company's non-current liabilities. This might include information about long-term loans, leases, or other obligations that extend beyond the current fiscal year. The schedule may also include details about the terms of these liabilities, such as interest rates or repayment schedules.

4. Why is it important for investors to understand a company's non-current liabilities?

Answer: Investors need to understand a company's non-current liabilities in order to assess its long-term financial health. Non-current liabilities represent financial obligations that extend beyond the current fiscal year, and they can have a significant impact on a company's cash flow and ability to invest in future growth. Understanding a company's non-current liabilities can help investors make informed decisions about whether or not to invest in the company.

5. What are some examples of non-current liabilities that might be included in the 4th schedule of a prospectus?

Answer: Examples of non-current liabilities that might be included in the 4th schedule of a prospectus include long-term loans, bonds, leases, and other financial obligations that extend beyond the current fiscal year. These liabilities may be secured or unsecured, and they may have varying interest rates or repayment schedules.

6. How do non-current liabilities differ from current liabilities, and why is this distinction important?

Answer: Non-current liabilities are obligations that a company is expected to fulfill over a period of more than one year, while current liabilities are obligations that are due within one year. This distinction is important because it helps investors understand a company's short-term and long-term financial health. Current liabilities can have a more immediate impact on a company's cash flow, while non-current liabilities represent longer-term commitments that may impact a company's ability to invest in future growth.

7. How can a company manage its non-current liabilities?

Answer: A company can manage its non-current liabilities by carefully monitoring its debt levels and repayment schedules. This might involve negotiating favorable interest rates or repayment terms with lenders, or refinancing existing debt to reduce interest costs. Companies can also explore alternative financing options, such as issuing equity or selling assets, to raise funds and pay down their long-term liabilities.

8. What risks are associated with non-current liabilities?

Answer: Non-current liabilities can pose a number of risks for companies, particularly if they are unable to meet their repayment obligations. If a company defaults on a long-term loan or lease, it may face legal action or damage to its credit rating. Additionally, high levels of non-current liabilities can limit a company's ability to invest in future growth or respond to changes in the market.

9. What factors might impact a company's non-current liabilities?

Answer: A company's non-current liabilities may be impacted by a variety of

A prospectus is a formal document that provides information to potential investors about the securities being offered by a company. The purpose of a prospectus is to help investors make informed decisions about whether or not to invest in a company. The 4th schedule of a prospectus is an important section that provides information about a company's non-current liabilities. Non-current liabilities are financial obligations that a company is expected to fulfill over a period of more than one year. Examples of non-current liabilities include long-term loans, bonds, leases, and other obligations that extend beyond the current fiscal year. Non-current liabilities can have a significant impact on a company's financial health, as they represent long-term commitments that must be met in the future. The 4th schedule of a prospectus typically includes details about a company's non-current liabilities. This might include information about the amount of debt a company has, the terms of the debt (such as interest rates and repayment schedules), and any collateral that has been pledged to secure the debt. The schedule may also include information about any leases or other long-term obligations the company has entered into. Understanding a company's non-current liabilities is important for investors because it can help them assess the company's long-term financial health. Companies with high levels of non-current liabilities may be more vulnerable to financial risk and may have limited resources available for future growth and investment. On the other hand, companies with manageable levels of non-current liabilities may be in a stronger financial position and may be better positioned for long-term success. Companies can manage their non-current liabilities by carefully monitoring their debt levels and repayment schedules. This might involve negotiating favorable interest rates or repayment terms with lenders, or refinancing existing debt to reduce interest costs. Companies can also explore alternative financing options, such as issuing equity or selling assets, to raise funds and pay down their long-term liabilities. In summary, the 4th schedule of a prospectus provides important information about a company's non-current liabilities. Investors should carefully review this section of the prospectus to gain a better understanding of the company's long-term financial health and potential risks and rewards. Companies should also carefully manage their non-current liabilities to ensure long-term financial stability and growth.