Answer:
C. Debt to Income Ratio
Explanation:
The debt to income ratio (DTI)provides a picture of the level of debts of a borrower. The DTI is usually expressed as a percentage of gross income. A high debt to income ratio indicates a person spends a high percentage of income on paying debts.
Lenders use the debt to income ratio to assess a borrower's ability to repay debts. Individuals with low DTI are preferred to those with a high one.
Answer:
a prior period adjustment
Explanation:
A prior period adjustment -
It is the correction of the accounting error which took place in the past and was written in the prior year of financial statement , net of the income taxes , is known as a prior period adjustment .
It is the method to fix the previous problem of past during the reporting .
hence , the correct term fro the given statement is a prior period adjustment .
Rules of thumb or short-cuts that individuals use to save time when making complex decisions are known as....<span>Heuristics</span>
Answer:
A. $70,000
Explanation:
From the information given, we discover that
Gross profit from sporting goods business = $100,000
Subtract: other Expenses = 11500
Subtract: Building depreciation expenses (10000 × 55%) = 5500
Subtract: Mortgage Interest (10000 × 55%) = 5500
Subtract: Depreciation on vehicle used for business = 3000
Less: Utilities for Ground Floor = 4500
Net Self employment Income = $70,000
Note that 55% is used for ground floor, it is calculated as 100 - 45% used by tenant, therefore, for business purpose 55% will be taken.
The answer is memos, emails, and research papers.
