Which of the following ratios would a lender find most useful in monitoring a porrower's ability to make loan payments? PE ratio Return on assets Total asset turnover Inventory turnover Cash coverage ratio

Q: In the context of handling debt - like items in M&A, what is the most buyer-friendly approach for…

A: The most buyer-friendly approach for items representing a hard claim that must be paid post-close in…

Q: will bills  payable given to creditors affect the current ratio?

A: Current ratio is the ratio of Current Assets to Current Liabilities.  Current ratio = Current…

Q: Which is not a metric used by lenders to measure the overall suitability of a loan: 1) Loan to…

A: Loan to value ratio- It is a measure of indebtedness which divides the outstanding debt by the…

Q: e traditional 4 C’s of credit analysis, which is the ability of a company to make payments on time?…

A: 4Cs of credit are Collateral, Covenant, Capacity and character.

Q: How do you show profit and loss on a balance sheet?

A: Balance Sheet is the part of financial statement which shows the financial position of the company…

Q: From the standpoint of a borrower, is long-term or short-term credit riskier? Explain

A: credit risk is define as the chances of a loss due to  borrower's failure to repay obligation in…

Q: Compare and contrast the lenders financial ratios and for what purpose they use the ratios

A: Financial ratios refer to the relative magnitude of the selected values measured in numerical that…

Q: Classify the following items as (1) on-balance-sheet assets, (2) on-balance sheet liabilities, (3)…

A: Off-balance sheet items include the items that are not represented in the balance sheet. Whereas,…

Q: What are the four categories of collateral value for secured loans?How does each affect credit risk?

A: Real property (e.g., land, buildings) Tangible personal property (e.g., equipment, vehicles)…

Q: Which of the following type of loan is best used for temporary shortfalls of income? a. Secured…

A: Loans can be short term loans or long term loans

Q: What is the Effect of Loan-to-Value Ratio on Loan Cost?

A: LTV ratio tells about the maximum loan approved in terms of the value of the collateral given.

Q: Credit scoring is a process used to   Multiple Choice   determine what interest rate to charge a…

A: Credit score : it is a number between 300 - 850 which depicts consumers creditworthiness.

Q: In addition to creditworthiness, on what intangible factors does unsecured lending depend?

A: Unsecured lending is that type of lending in which there is no requirement of any collateral.   For…

Q: How do you accrue and calculate interest

A: interest calculation = principle amount * rate of interest    accrued interest is interest…

Q: What are the different sources of financial ratio information?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: Explain the lending methodology

A: Loaning (otherwise called "financing") happens when somebody permits someone else to get something.…

Q: What is the process of calculating the remaining balance of different types of loans?

A: The remaining balance of a credit plan equation can be part of two sections, the future estimation…

Q: at is the relationship of Debt (Loans) to Borrowers to Financial Intermediaries?

A: The financial intermediaries are very important in the financial world and transactions and there…

Q: Why is interest paid on amounts borrowed from banks and other lenders considered to be anoperating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Define each of the following terms:k. Accruals; trade credit

A: There are two types of systems in accounting, one is a cash system of accounting and the other is…

Q: What two types of current assets are frequently used as security for short-term loans?

A: Short term loans are generally obtained by companies in order to support their temporary business…

Q: receivables turnover ratio

A: Receivable turnover ratio is an important accounting metric used to evaluate the performance of…

Q: How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower…

A: Receivables turnover ratio is measured by dividing net credit sales of a period by average accounts…

Q: What are the advantages and disadvantages of financing assets through loans

A: Resource account is that the act of utilizing Associate in Nursing organization's financial record…

Q: A knowledgeable investor tries to asses -earnings quality -accounts receivable a -accounts payable…

A: Investor is the person who invests in some property or asset.

Q: lending

A: The term net lending is defined as an economic measure which measures as to whether the government…

Q: The accounts receivable turnover and inventory turnover are used to analyze O long-term solvency. O…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: How is the times-interest-earned ratio calculated, and what does it evaluate?

A:

Q: How commercial loans and mortgages are structured in terms ofinterest and principal payments.

A: Commercial loan, as well as a mortgage, are being structured in terms of interest and principal…

Q: Loans and receivable should be measured subsequent to initial recognition at *   a. Amortized cost…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Differentiate the following investments by determining its advantage or disadvantage.  Savings…

A: The savings account provides interest on the money held in the account. The money can be easily…

Q: How does company’s investment in receivables is influenced by several variables? What are the…

A: Receivables: Receivables refer to an amount to be received in future. General classifications of…

Q: How to compute the ratio of liabilities to owner's equity

A: Ratio of Liabilities to Owner Equity is Also called Debt To equity ratio.   Debt to equity ratio…

Q: How do each of the items in a firm’s credit policy—defined to include the credit period, the…

A: Strong credit policy indicates the effectiveness of credit management. The four components of credit…