Banks can use the times interest earned ratio as a measure of a borrower's ability to repay their loan
Indicate whether the statement is true or false.
Answer: TRUE
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You are interested in accumulating $10,000 so that you can take a cruise in 3 years. If you trying to solve for the amount that you need to invest each year, earning 6% interest compounded annually, the $10,000 represents:
a. The amount to invest. b. An annuity. c. A present value. d. A future value.
Which of the following is/are not true regarding maintenance?
a. Maintenance includes routine costs such as for cleaning and adjusting. b. Maintenance includes the costs of restoring an asset's service potential after breakdowns or other damage. c. Maintenance does not extend the estimated service life or increase its productive capacity of an asset beyond original expectations. d. U.S. GAAP and IFRS treat maintenance expenditures as expenses of the period when the firm makes the expenditure. e. Distinguishing repairs from maintenance is difficult but typically not necessary because expenditures for both are period expenses.
Explain briefly how annuity distributions are taxed
What will be an ideal response?
Precedent is when:
a. judges use ethical principles to solve current cases b. judges ask the jury to solve current cases by following state codes c. judges use the U.S. Constitution to solve current cases d. judges use decisions from earlier cases for guidance in legal principles to solve cases e. judges confer with higher ranking judges to solve current cases