If you are a bank assessing the long-term credit of a company, you are usually most interested in evaluating which one of the following? a. liquidity and profitability. b. solvency and marketability. c. liquidity and solvency. d. profitability and solvency.
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If you are a bank assessing the long-term credit of a company, you are usually most interested in evaluating which one of the following?
a.
liquidity and profitability.
b.
solvency and marketability.
c.
liquidity and solvency.
d.
profitability and solvency.
Step by step
Solved in 2 steps
- Which of the following types of financial risk can be effectively managed by holding a lot of short-term deposits on the balance sheet that are used to finance long-term assets of the business such as mortgage loans/credits to allow the business to make profits? Select one: a. Interest Rate Risk b. Liquidity Risk c. Market Risk d. Foreign Exchange RiskWhich of the following pairs of financial statement analysis tool will be given more emphasis by a firm that is considering whether to grant trade credit or sell on account to a new client? a. Current and cash ratio b. Book value and price-to-earnings ratio c. Debt and debt-to-equity ratio d. Return on sales and return on assetWhen a firm sells its accounts receivable to raiseshort-term cash, it is engaging in a strategycalleda. factoring.b. financial planning.c. equity financingd. debt financing.e. drafting
- Describe why an Investor would use Profitability Ratio’s? What are the following ratio's measuring (i) Return on Assets, (ii) Return on Equity, (iii) Profit Margin. Describe why a CEO would use Activity Ratio’s? What are the following ratio’s measuring (i) Days Receivables Outstanding, (ii) Inventory Turnover. Describe why a Bank would use Solvency Ratio’s? What are the following ratio’s measuring (i) Current Ratio, (ii) Acid-Test, (iii) Debt Ratio, (iv) Debt to Equity Ratio, Times Interest Earned ratioI. What are terms of credit? From the viewpoint of a short-tent creditor, why do lines of credit increase a company's liquidity? How arc the unused portions of these lines presented in financial statements? 2. Why are investments in marketable securities shown separately from cash equivalents in the balance sheet?Match the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects Accounts receivable turnover
- When assessing a company’s Credit Risk, analysts use financial ratios to determine liquidity and solvency IS IT TRUE?Choose from the following list of terms and phrases to best complete the following statements. a. Cash c. Outstanding check e. Cash over and short b. Cash equivalents d. Liquidity f. Voucher system 1. The category includes currency, coins, and deposits in bank accounts. 2. The term refers to a company’s ability to pay for its current liabilities. 3. The category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value will not greatly change.A. What are the benefits of credit management brings on the economic aspect of a company? B. Does sales and credit related? How? *** Need asap pls. Thank you.
- Which ratios are suitable for analyzing the bank’s business performance?Which of the following financial statements would be most useful if an analyst wants to know the profitability of a company? A. balance sheet B. statement of cash flows C. statement of retained earnings D. income statementFor measuring the financial risk in the organisation, we can use? Select one: a. Cash flows Ratio b. Balance sheet ratios c. Earnings of the company d. All options provided