Question

QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O B. liquidity a
A measure of profitability is the O A. earnings per share OB. debt to assets ratio O C. current ratio O D.working capital
0 0
Add a comment Improve this question Transcribed image text
Answer #1
1 Correct option is: C. Liquidity and solvency
Long term creditors are usually interested in liquidity and solvency ratio. That is companies ability to pay off in case of liquidity and ability to return its debt
2 Correct option is: C. Solvency ratio
That is companies ability to pay off its debt from existing assets
3 Correct option is: A. Earnings per share
Profit is accertained by the earnings per share
Add a comment
Know the answer?
Add Answer to:
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio...

    QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio O C solvency ratio O D. None of the answer choices is correct QUESTION 25 Free cash flow provides an indication of a company's ability to A. generate cash to invest in new capital expenditures @ B. generate cash to pay dividends C. generate cash to invest in new capital expenditures and to pay dividends. D.generate net income QUESTION 26 Which of the following...

  • E4-03B.Stat Question 6 Not complete Marked out of 4.00 P Flag question Evaluating he Liquidity and...

    E4-03B.Stat Question 6 Not complete Marked out of 4.00 P Flag question Evaluating he Liquidity and Solvency of a Company Identify whether the following statements are true or false. a. The current ratio is a measure of a firm's solvency. b. The return on assets ratio is a measure of a firm's profitability. c. The profit margin is a measure of a firm's liquidity. d. The debt-to-total-assets ratio is a measure of a firm's solvency

  • Please list the formula and definition of each term Times interest earned = Free cash flow...

    Please list the formula and definition of each term Times interest earned = Free cash flow = Profitability ratios = Earnings per share = Price-earnings ratio = Gross profit rate = Profit margin = Return on assets = Asset turnover = Payout ratio = Return on common stockholders’ equity= Liquidity ratios measure Working capital = Current ratio = Current cash debt coverage = Inventory turnover = Days in inventory = Accounts receivable turnover = Average collection period = Solvency ratios=...

  • Please list the formula and definition of each term this will be your cheat sheet Liquidity...

    Please list the formula and definition of each term this will be your cheat sheet Liquidity ratios measure Working capital = Current ratio = Current cash debt coverage= Inventory turnover= Days in inventory= Accounts receivable turnover= Average collection period = Solvency ratios= Debt to assets ratio= Times interest earned = e Free cash flow = Profitability ratios = Earnings per share = Price-earnings ratio = Gross profit rate = Profit margin = Return on assets = Asset turnover = Payout...

  • 10. On a classified balance sheet, companies usually list current assets a in alphabetical order b...

    10. On a classified balance sheet, companies usually list current assets a in alphabetical order b with the largest dollar amounts first. c. in the order in which they are expected to be converted into cash. d. in the order of acquisition 11. These are selected account balances on December 31, 2022 Land $150,000 Land (held for future use) 225,000 Buildings 1,200,000 Inventory 300,000 Equipment 675,000 Furniture 150,000 Accumulated Depreciation 450.000 What is the total amount of property, plant, and...

  • 10) The statement of cash flows reports each of the following except a. cash receipts from...

    10) The statement of cash flows reports each of the following except a. cash receipts from operating activities b. cash payments from investing activities. c. the net change in cash. d. cash sales. 11) Which one of the following is not a characteristic generally evaluated in analyzing financial statements? a. Liquidity b. Profitability c. Marketability d. Solvency 12) Short-term creditors are usually most interested in evaluating a. solvency. b. liquidity c. marketability. d. profitability 13) A stockholder is interested in...

  • A company has a decreasing current ratio. Creditors should be concerned with long-term solvency. about the...

    A company has a decreasing current ratio. Creditors should be concerned with long-term solvency. about the company's ability to pay current debts as they come due. about the company's profitability. about whether earnings per share is increasing or decreasing. Question 18 In addition to recognizing income tax expense, the accounting necessary to record income taxes requires a credit to income tax payable based on net income times the tax rate. a debit to the income tax expense account for the...

  • QUESTION 3 KI's cash flow to creditors in 2015 is Oa $6,700 Ob.$16,600 OC $1,400 Od...

    QUESTION 3 KI's cash flow to creditors in 2015 is Oa $6,700 Ob.$16,600 OC $1,400 Od $23,800 QUESTION 4 KI's return on assets is O 15.30% Ob.17.32% OC 10.53% Od. 12.79% QUESTION 5 KI's internal growth rate is Oa2.07% Ob.6.78% OC1.88% Od.5.19% Click Save and Submit to save and submit. Click Save All Answers to save all answers. Use the following financial statements to answer Questions 1-17. Kramerica Industries (KI) 2015 Income Statement $422,045 291,090 37,053 $83,902 16,400 $77,502 27,126...

  • Question 6 Selected financial data for a recent year for two clothing competitors, Le Château Inc....

    Question 6 Selected financial data for a recent year for two clothing competitors, Le Château Inc. and Reitmans (Canada) Limited, are presented here (in thousands, except share price): Le Château Reitmans Current assets $116,724 $319,362 Total assets 168,490 542,083 Current liabilities 36,038 121,172 Total liabilities 108,136 160,915 Loss to common shareholders (35,745) (24,703) Share price $0.27 $3.96 Weighted average number of common shares 29,964 64,079 For each company, calculate the following values and ratios. Where available, industry averages are included...

  • Use the following information for que stions 2 and 3: For its most recent year a...

    Use the following information for que stions 2 and 3: For its most recent year a company had Sales (all on credit) of $830,000 and Cost of Goods Sold $525,000. At the beginning of the year its Accounts Receivable was $80,000 and its Inventory $100,000. At the end of the year its Accounts Receivable was S86,000 and its Inventery $110,000. On average how many days of sales were in Inventory during the year? On average how many days of sales...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT