What Type of Debt Is Not Included in Calculating a Partner's

question 33

Multiple Choice

What type of debt is not included in calculating a partner's at-risk amount?

• A) Nonrecourse debt.
• B) Recourse debt.
• C) Qualified nonrecourse debt.
• D) All of these types of debt are included in the at-risk amount.

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Definitions:

Inventory Turnover

A ratio indicating how often a company sells and replaces its stock of goods during a particular period, a measure of efficiency in managing inventory.

Current Ratio

Indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future; it is found by dividing current assets by current liabilities.

Obsolete

Refers to products, technologies, or methods that are out-of-date, no longer usable, or have been replaced by new versions.

Market Value Ratios

Relate the firm’s stock price to its earnings and book value per share.