Answer:
Matching Statements to Appropriate Terms:
Price-earnings ratio = Profitability Ratio
Return on Assets = Profitability Ratio
Accounts Receivable Turnover = Liquidity Ratio
Earnings per share = Profitability Ratio
Payout ratio = Profitability Ratio
Working capital = Liquidity Ratio
Current ratio = Liquidity Ratio
Debt to Assets = Solvency Ratio
Free Cash Flow = Solvency Ratio
Explanation:
Profitability Ratios are one of the classes of financial metrics that measure a business's ability to generate earnings relative to its revenue, operating costs, assets, or shareholders' equity during a period of time.
Liquidity Ratios measure the ability of the company to pay its maturing short-term debt obligations from its current assets. They include the working capital, the current ratio, and the acid-test ratio.
Solvency Ratios measure the ability of the company to pay its maturing long-term debt obligations from its assets.
Answer:
The correct answer is letter "A": If there is an error on your credit report, you are more likely to have higher interest rates or even get rejected for the loan altogether
Explanation:
Dealing with errors in your credit report is a disadvantage because financial institutions will have doubts about your credit history. In front of loan requests, banks are likely to increase the rate of interest they could charge you or even reject the loan at all because they will consider <em>the risk of lending you money is higher due to the inaccuracies on your credit report</em>.
Answer:
Explanation:
The journal entries are shown below:
1. Bonds payable A/c Dr $1,900,000 (1,900 × $1,000)
To Discount on bonds payable $37,000
To Common stock $1,140,000 ($10 × 60 shares × 1,900)
To Additional paid-in capital in excess of par $723,000
(Being the conversion of bonds is recorded and the remaining balance is credited to the Additional paid-in capital in excess of par)
