A banker may perform a financial ratio analysis to assess a firm's ability to repay debt in a timely manner.

Answer the following statement true (T) or false (F)


True

Ratio analysis involves studying various relationships between different items reported in a set of financial statements. Creditors are interested in whether a company will be able to repay its debts on time. Ratios are grouped into categories such as measures of debt-paying ability and measures of profitability.

Business

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Nevada Enterprises purchased a machine on January 2, 2013 . at a cost of $140,000 . An additional $70,000 was spent for installation, but this amount was charged erroneously to repairs expense. The machine has a useful life of five years and a salvage value of $40,000 . As a result of the error,

a. retained earnings at December 31 . 2014, was understated by $34,000 and 2014 income was overstated by $6,000. b. retained earnings at December 31 . 2014, was understated by $42,000 and 2014 income was overstated by $6,000. c. retained earnings at December 31 . 2014, was understated by $34,000 and 2014 income was overstated by $14,000. d. 2013 income was understated by $70,000.

Business

Why do manufacturers of products that are in the maturity stage of the product life cycle prefer to offer similar prices?

What will be an ideal response?

Business

Blending problems arise when one must decide which of two or more ingredients is to be chosen to produce a product

Indicate whether the statement is true or false

Business

In the case of Reider v Louisiana a baseball player brought a successful assault and battery lawsuit against a fan they threw beer from the stands and hit the center fielder, K. T. Reider

Indicate whether the statement is true or false

Business