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SCORPION-xisa [38]
3 years ago
9

g Which of the following are the three factors used to determine a company's credit rating? Its current ratio, its debt-to-equit

y ratio, and its interest coverage ratio The percentage of net profit used to make payments on the company's total debt outstanding in the prior year, the company's inventory turnover ratio, and the amount of cash the company keeps in its retained earnings account A company's current ratio, how much it has in accounts receivable, and how many times it has cut its dividend in the past three years Whether the company's prior-year current assets are big enough to cover its upcoming-year interest payments, the company's operating profit margin, and whether the company's total debt exceed its total shareholders' equity Its debt-to-equity ratio, its interest payments, and its debt-to-assets ratio
Business
1 answer:
NISA [10]3 years ago
8 0

The three factors used to determine a company’s credit rating are its current ratio, its debt-to-equity ratio, and its interest coverage ratio.

<u>Explanation:</u>

  • A credit rating comes in the list of the company’s annual performance targets. It helps to decide the company’s current year progress.  
  • A company’s debt-to-equity ratio is used to know the debt of a company as compared to the total equity. If this ratio is high, the company is taking on much debt.  
  • The current ratio marks a way to compute the liquidity of the company. It shows how well a firm is placed to meet the short term obligations. Broadly, a 2-1 ratio is considered a good ratio.
  • The interest coverage ratio tells how well the company may pay its future loan payments. If the ratio is higher than 3-to-1, it suggests that the company is in a good position to make future payments.   

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Cost of Direct Materials Used in Production for a Manufacturing Company
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Answer:

$855,000

Explanation:

The Raw Materials T - Account can be used to determine the cost of direct materials used in production using the missing balance technique as follows :

Raw Materials T - Account

Debit :

Beginning Balance                                               $279,000

Purchases                                                             $828,000

Total                                                                     $1,107,000

Credit :

Ending Balance                                                    $252,000

Transferred to Production (<em>Balancing figure</em>)     $855,000

Total                                                                     $1,107,000

3 0
4 years ago
When many members of the project team disagree, then delaying the decision, gathering more data, or agreeing to let person make
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Answer:

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The correct answer to this open question is the following.

In the set of all past due accounts, let the event A mean the account is between 31 and 60 days past due and event B means the account is that of a new customer. The complement of A is all accounts fewer than 31 or more than 60 days past due.

That is why is so important to maintain a good credit score. A past-due account was not paid on time and with the minimum amount of money it was required. So pay attention to the last day marked in your account statement. It is not a good thing to your record and you will be paying extra money due to a late fee.

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Answer:

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Explanation:

3 0
3 years ago
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