Answer:
0.47
Explanation:
Debt service coverage ratio = Net Operating Income ÷ Total Debt Service
where,
Net Operating Income = Revenue - Certain Operating Expenses
Total Debt Service = Current Debt Obligations
therefore,
debt service coverage ratio = $32,000 ÷ $68,000 = 0.47
During recessions investment falls by a smaller percentage than GDP.
Answer: Option B
<u>Explanation:</u>
GDP is the gross domestic product of the country which talks about the growth rate of the country. During the time of recession in the trade cycle, the GDP of a country falls down.
The recession also sees the falling down of the demand, income, investment and so on. But during the time of recession, the fall in investment by the citizens of the country in various assets is less than the fall in the GDP of the country.
Answer:
The adjusted balance for Prepaid Insurance is $1,200. Whereas, the expired Insurance that is to be charged to Profit or Loss Statement is $1,500.
Explanation:
The Double Entry to Record the Expired Resource (Insurance) is:
Insurance Expense (Dr.) $1,500
Prepaid Insurance (Cr.) $1,500
This implies that the adjusted balance for Prepaid Insurance is 2,700 - 1,500 = $1,200.
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