Problem 1. Georgia Lazenby believes a current liability is a debt that can be expected to be paid in one year. Is Georgia correct? Explain.
a. What are long-term liabilities? Give two examples.
b. What is a bond?
Problem 3. Contrast these types of bonds:
a. Secured and unsecured.
b. Convertible and callable.
Problem 4. Valentin Zukovsky says that liquidity and solvency are the same thing. Is he correct? If not, how do they differ?