Bryon's Assets Include His Furniture,clothing and an Automobile

question 43

Multiple Choice

Bryon's assets include his furniture,clothing and an automobile.His assets are in which of the following asset classes?

• A) tangible
• B) financial
• C) liquid
• D) a and b
• E) b and c

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Definitions:

Times Interest Earned Ratio

The times interest earned ratio is a financial metric that measures a company's ability to meet its debt obligations based on its current earnings before interest and taxes (EBIT).

Default in Payment

Occurs when a borrower fails to make a loan payment on time as agreed upon in the loan agreement.

Gross Profit Rate

The percentage difference between a company's net sales and the cost of goods sold, indicating the efficiency of sales generation.

Sales Dollar

Refers to the total revenue generated from sales of goods or services, measured in dollars.