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Novay_Z [31]
3 years ago
9

Below are various states of financial distress: 1. defaulting on a principal payment on debt 2. restructuring debt 3. liquidatin

g a firm 4. filing for bankruptcy 5. failing to make a required interest payment on time what is the order of increasing gravity that analysts typically consider when assessing credit risk and bankruptcy risk according to a continuum of financial distress
Business
1 answer:
anastassius [24]3 years ago
8 0
<span>1) failing to make a required interest payment on time. I chose this as the least significant because you can always make up a late payment and then its not really a huge deal. It could hurt your credit score but it is not a life or death situation. 2) defaulting on a principal payment on debt. This is a little worse because at this point you cant cant even pay the debt and now your falling a little worse into debt but you can still get out. 3) restructuring debt. This is worse because you already have obtained a lot of debt but you are getting the chance to restructure it to help pay it off you even though your in a bad spot you still have a chance to get out. 4) filing for bankruptcy. At this point you are bankrupt you really don't have a lot of options left and you are kind of at the point of no return unless you can get a hold of a lot of cash really fast. 5) liquidating a firm. At this point you have to sell all of your assets in order to pay of your debt. You will be left with nothing left you may even have to sell you house all your jewelry basically everything that you own that has some value that can be sold.</span>
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Instead of sponsoring a giveaway for a free pair of skis, your e-commerce site should employ integrated marketing.

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3 0
2 years ago
Identify the uses of generally accepted accounting principles (GAAP). A. Independent accountants use GAAP to determine the amoun
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The correct option is;

B. Companies use GAAP when preparing financial statements

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7 0
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Ajax Corp's sales last year were $400,000, its operating costs were $362,500, and its interest charges were $12,500. What was th
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3 times

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Times Interest earned is a financial ratio that shows how many times an entity's net income or earnings before interest and taxes can be used to settle the company's interest expense.

It is given as the ratio of earnings before interest and tax to interest expense.

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3 years ago
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