In making a decision of whether to issue a loan to a consumer, an unsecured creditor may consider a number of factors. Which of these is NOT a factor that a creditor would normally consider?
A. the consumer's credit history
B. the consumer's income
C. the consumer's other assets
D. the consumer's voting history
Answer: D
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____________________ controls primarily concern safeguarding of assets and ensuring the reliability of the financial statements
Fill in the blank(s) with correct word
The comparison of the financial data of a single company for two or more years is called horizontal analysis
Indicate whether the statement is true or false
The larger the bargaining unit, the less difficult it is for the union to win.
Answer the following statement true (T) or false (F)
Annala Corporation is considering a capital budgeting project that would require investing $80,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $250,000 and annual incremental cash operating expenses would be $180,000. The project would also require an immediate investment in working capital of $20,000 which would be released for use elsewhere at the end of the project. The company's income tax rate is 30% and its after-tax discount rate is 13%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The income tax expense in year 2 is:
A. $15,000 B. $6,000 C. $75,000 D. $54,000