Liabilities Accounting-Based Liability Restrictions(Covenants) Aim: Safequard creditors' investments Common restrictions include: Dividend distribution restrictions Working capital restrictions Debt-to-equity ratio restrictions Seniority of asset claim restrictions Acquisition and divestment restrictions Liability issuance restrictions Potential information sources: Liability prospectus, annual report, SEC filings, and creditor information services(e.g, Moody's)Liabilities Accounting-Based Liability Restrictions (Covenants) Aim: Safeguard creditors’ investments Common restrictions include: n Dividend distribution restrictions n Working capital restrictions n Debt-to-equity ratio restrictions n Seniority of asset claim restrictions n Acquisition and divestment restrictions n Liability issuance restrictions Potential information sources: Liability prospectus, annual report, SEC filings, and creditor information services (e.g., Moody’s)