Please answer “True” or “False” to the following statements. Only long-term debt is first in line to be paid on the liquidation or sale of a company. Convertible debt can never have an impact on the...

Please answer “True” or “False” to the following statements.

• Only long-term debt is first in line to be paid on the liquidation or sale of a company.


• Convertible debt can never have an impact on the ownership percentage of a company.


• Factoring is a method for companies with high risk accounts receivable to insure the receipt of at least some of the cash owed to them.


• Leasing is not considered a debt for balance sheet and liquidity purposes.


• A company with a liquidity covenant of $500,000 must maintain that amount of available cash at all times.