The higher the times interest earned ratio, the better the creditors' protection. True False

1. Explain how an installment loan differs from revolving credit in terms of risk and the nature of the return to the lender.

Discuss the theoretical weaknesses of the use of the direct write off method to account for bad debt expense. Provide 2 reasons.

Which of the following statements is most correct?   a. When actual inflation exceeds expected inflation, debtors gain at the expense of creditors because they repay their loans with depreciated currency. b. When expected inflation exceeds actual inflation, debtors gain at the expense of creditors because they repay their loans with depreciated currency. c. When actual inflation exceeds expected inflation, creditors gain at the expense of debtors because they repay their loans with devalued currency. d. When actual inflation exceeds expected inflation, debtors and creditors both lose because they repay their loans with depreciated currency.