Which of the following statement is correct? Select one: a. Return on assets is the ratio of net income after interest expense to total assets b. All options are correct statement C. Average collection period is the average number of times it takes for the company's customers to pay their bills d. Increase in the debt ratio indicate more reliance on debt as a source of financing

Which of the following statement is correct? Select one: a. Return on assets is the ratio of net income after interest expense to total assets b. All options are correct statement C. Average collection period is the average number of times it takes for the company's customers to pay their bills d. Increase in the debt ratio indicate more reliance on debt as a source of financing

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Match the following terms or phrases in (a–g) with the explanations in 1–8. Terms or phrases may be used more than once. Question 11 options: Current assets/Current liabilities Probable likelihood and estimable liability Measures the “instant” debt-paying ability of a company Current assets – Current liabilities (Cash + Temporary investments + Accounts receivable)/Current liabilities Cash + Temporary investments + Accounts receivable Probable likelihood of a liability but cannot be estimated Remote contingent liability Reasonably possible likelihood of a liability 1. Current ratio 2. Working capital 3. Quick assets 4. Quick ratio 5. Record an accrual and disclose in the notes to the financial statements 6. Disclose only in notes to financial statements 7. No disclosure needed in notes to financial statements
4. Explain or illustrate before-tax cost of debt and after-tax cost of debt. 5. What are the relationships between: a) interest rate and cost of debt; b) default risk and cost of debt; and c) bond rates and interest rates? 6. What is the difference between yield to maturity on outstanding debt and coupon rate? Which is a better measure of cost of debt between the two? 7. How is COST OF preferred equity computed?
We have all heard of Return on Investment or (ROI). Please research anddescribe five other business metrics that you may use in your analysis withyour business plan.Also, please describe how these ratios are calculated for example...Quick Ratio or Acid Test, Cash + Accounts Receivable ÷ Current Liabilities.
If a company borrows more than it pays in interest. Select one: a.Cash flow to stockholders will be negative b.Cash flow to creditors will be negative O c.Cash flow to stockholders will be positive O d.Cash flow to creditors will be positive
If you are a bank assessing the long-term credit of a company, you are usually most interested in evaluating which one of the following? a. liquidity and profitability. b. solvency and marketability. c. liquidity and solvency. d. profitability and solvency.
dont provide AI solution otherwise i give dislike .......plesa note be carefully What is the formula for calculating the debt-to-equity ratio? a) Total Assets / Total Liabilities b) Total Liabilities / Total Equity c) Total Equity / Total Assets d) Total Revenue / Total Expenses
Discussion
In Debtors turnover ratio , a low ratio means company collects money fast Select one: True False
are designed to indicate the potential default risk that lenders are undertaking when they grant a loan. Repayment capacity ratios O Financial efficiency ratios Profitability ratios Solvency ratios Liquidity ratios
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What is Return to Equity? Interest paid on debt Revenue minus Costs Only Retained Earnings All of the Above
Please answer without plagiarism and explain all options thanku