Q: What is the difference between total assets and total liabilities? a) Dividend b) Bond sinking…
A: Balance sheet has two parts ASSETS and LIABILITIES
Q: Owner's equity Select one: O a. The resulting amount when total а. revenue are subtracted from total…
A: Owner equity is the amount which is invested by the owner to carry forward a business to earn money.
Q: Is there a consequence for reported profit or loss if a particular financial instrument, for…
A: Equity Stock represents the ownership in the company. Equity shareholders have the residual claim on…
Q: Interest Expense on Notes Payable is recorded with an increase to Interest Expense, which decreases…
A: The interest expense on notes payable would be recorded with an increase to interest expense, which…
Q: the debt to equity is: debt/equity = long term/ total equity is this true or false
A: Debt Equity Ratio - Debt Equity Ratio shows the comparison of debt company owing with the total…
Q: is a correct statement below? A. Equity is the residual interest in the liabilities of the entity…
A: Option A is incorrect The correct statement is Equity is the residual interest in the assets of the…
Q: Unrealized holding gains and losses on debt securities classified as available for sale would have…
A: Other Comprehensive Income refers to items of income and expenses that are not recognized as a part…
Q: When debt investment was sold, total cash received is always equals to the sum of the selling price,…
A: Debt Investment: Assumption that the borrower will repay the investment with interest (debt…
Q: Which of the following accounts is increased by a debit? Common Stock Accounts Payable…
A: Common Stock - It is the share capital of a company in the form of shares held by shareholders,…
Q: Retained earnings, as a form of equityfinancing, area. gross earnings.b. profits before taxes.c.…
A: Equity financing: It is a method to raise money for business operations and growth. Retained…
Q: The realized gain (loss) on sale of debt investments with an objective of collecting contractual…
A: Realized Gain: When an investment is sold for a greater price than it was originally acquired, this…
Q: The calculation of earnings and profits is used primarily to determine, which of the following: O a.…
A: Every company will try to increase the profitability from its operations. The company will earn…
Q: Debt investments are recorded at cost when purchased. True or False True False
A: Introduction: When an investor loaned money to a corporation or project sponsor, the investor…
Q: The factor payment for the use of financial capital (loans and equity investments) is called...…
A: The cost of finance: Equity and debt are two sources of capital for any business. Investors who…
Q: Net Income is calculated as follows: NI = NII – Burden - PL + SG-T Where, bank burden (non-interest…
A: Formula: NI = NII - Burden - PL - + SG - T NI stands for Net Income.
Q: a. What is the percentage of debt used to finance Gap? ____________ b. What is the percentage of…
A: Ratio are the sub set, which is the group of metrics used for measuring the profitability as well as…
Q: which of the followings increase the Debt/equity ratio a. increase in current liabilities b.…
A: Debt equity ratio means the amount of debt as compare to $ 1 of equity. Formula for debt equity…
Q: When using the allowance method, as Bad Debt Expenseis recorded,a. Total assets remain the same and…
A: When the allowance method is used, the bad debt expenses are debited and the allowance for bad debt…
Q: The return which the debt holders get is called Select one: O a. None O b. Dividend O c. Interest O…
A: Debt refers to the amount borrowed by one party from another party, This arrangement of borrowing…
Q: Explain how continuous reliance on debt financing will affect the return to the equity holders or…
A: Financing is the method through which a corporation acquires capital or funds from the financial…
Q: High degree of financial leverage means Oa High debt proportion Ob Lower dobt…
A: Degree of financial leverage (DFL) is given by following relation between EBIT and interest.
Q: The most important non-cash item is a) Debt interest rate b) Income tax c) Dividend d) Depreciation
A: Answer
Q: The debt-to-assets ratio is the: Multiple Choice ratio of current liabilities to current assets.…
A: Debt-to Assets Ratio = Total Debt / Total Assets
Q: What is Debt to equity ratio of JFC? Note: please don’t use excel and show your solution.
A: Financial ratios are those which provide a summary of the accounts of a company and helps an…
Q: Which of the following will be subtracted while calculating ending equity under statement of changes…
A: Amount to be subtracted from the value of equity is owners drowning, treasury stock, or buyback of…
Q: Debt to Total Assets Ratio can be improved by: A. Borrowing More, B. Issue of Debentures, C. Issue…
A: Debt to total assets ratio measures the proportion of total assets finance by creditors. it can be…
Q: Ip (1 - Tp) = F (1 – TE) In this case, TE = 1-[rD (1- Tp)/ FE
A: Cost of Debt Cost of debt refers to the actual cost that a company is paying on its bond. The yield…
Q: 1- Debt investment are initially recorded at: а- Cost b- Cost plus accrued interest c- Fair value d-…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What is the most obvious difference between debt and equity financing? a. Principal and interest…
A: Debt financing requires the compulsory payment of interest at regular intervals and principal amount…
Q: For the following six items, indicate which financial statement category would be affected: (1) net…
A: Hello, I am only answering the first three subparts as per the policy and if you want others to be…
Q: Which of the following is a Profitability Ratio a. Proprietary Ratio b. Debt-Equity Ratio c.…
A: The profitability ratio determines the ability of an entity to generate profits as a result of…
Q: How are TIPS quoted?
A: Suppose for an investment ask price is given in real terms, then we have to first calculate…
Q: NPAT Less prefernce dividend is used in O a. Return on Equity O b. Return on Equity share…
A: A financial ratio is one of the important tools for analyzing a company’s financial statement. There…
Q: expense on short term debt should be based on projected balances and short term interest rates.…
A: Basic Concept of accounting
Q: Which of the following ratios is(are) useful in assessing a company's ability to meet current…
A: Short term solvency ratios used to measure the companies ability to pay its short term liabilities…
Q: Debtors Bills recei Creditors Bills payal Outstandin Prepaid ex Accrued in Income rec Profit made
A: Cash flow statement is one of the financial statement which states the inflows as well as outflows…
Q: The gain or loss on net monetary position is computed as a. The difference between the “net monetary…
A: In the period of inflation, an entity incurs purchasing power loss on holding of monetary assets and…
Q: Debt investment are initially recorded at: Cost Cost plus accrued interest Fair value None of the…
A: Debt investment: Debt investment is investment in any firm or project in which you expect to receive…
Q: QUESTION 2 Which of the followings is commonly used for debt ratings? return on net capital total…
A: Debt ratings: Debt rating is a scoring method used to tell about the creditworthiness of debt.…
Q: Compared to junior unsecured debt, subordinated debt exhibits __________ credit risk, __________…
A: The answer is option B. higher/ higher/ lower Compared to junior unsecured debt, subordinated debt…
Q: what of the following is the correct calculation for interest cover : a- total debt / interest…
A: Interest coverage ratio is used to find out the ability of a company to pay interest on its debts…
Q: Which of the ratios listed helps to indicate whether current liabilities could be paid without…
A: The liquidity ratio indicates the ability of the business entity to payout the current liabilities…
Q: True or False: Borrowing money and repaying debt results in changes in Net Worth. Celect one: - True…
A: Net worth means the amount that belong to the owner of the businessmen. It include the amount…
Q: Classifying Financial Statement Amounts For the following six items, indicate which financial…
A: Net income refers to the revenue left over after the deduction of cost of goods sold and other…
Q: 2. Which of the following correctly matches the classification of the debt investment with its…
A: IAS 32 and IAS 39, the previous IFRS financial instruments accounting standards, classified debt…
Q: Which is a component of stockholder's equity? a. Sinking funds b. Deferred charges c. Accumulated…
A: a. Sinking fund is a long term asset and included in the company's Balance sheet as Non current…
Step by step
Solved in 2 steps
- The cost of debt is a. interest. b. principal. c. equity. d. liquidity. e. c. and d.Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob. Current ratioc. Liability ratiod. Asset ratioThe debt ratio is calculated by dividing total assets by total liabilities Group of answer choices True False
- Total debt-to-assets ratio, debt-to-equity ratio and Long-term debt-to-capital ratio are examples of what type or category of ratios? a. Activity O b. Profitability O c. Liquidity O d. LeverageDefine these. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnoverMIRR is usually calculated with the same reinvestment rate as that embedded in the cost of debt NPV cost of equity IRR regular payback method
- Explains the effect of debt on profit margin and return on assets (ROA).In question C there is a plot of of cost of debt, cost of equity and cost of capital. Can you show how r_a is calculated to be 0.18667? r_d = Cost of debt r_a = cost of capital r_e = Cost of equitya. What is debt management ratio? b. What is profitability ratio?
- Net Income is calculated as follows: NI = NII- Burden – PL - + SG-T Where, bank burden (non-interest expense < non-interest Income). Select one: O True O False Next pMIRR is usually calculated with the same reinvestment rate as that embedded in the O cost of debt ○ NPV cost of equity IRR regular payback methodWhat is Return to Equity? Interest paid on debt Revenue minus Costs Only Retained Earnings All of the Above