Assignment BUS 422
- Explain the statement, “A financial claim is someone’s asset and someone else’s liability”?
There exist two sides of perception of a financial claim or of a debt, which is the natural outcome of the fact that a debt is always a relationship between two counterparts. Whereas the issuers of a debt consider their debt as a liability, the creditors consider it an asset. Accordingly, financial claims are registered in a balance sheet, which is a financial statement that summarizes the liabilities and assets in a defined point of time and which thus mirror different perceptions of a debtor or of a creditor.
- Explain ...