Which of the Following Is Included in the Net Interest

question 21

Multiple Choice

Which of the following is included in the net interest income component of GDI?
I.interest income paid by domestic business
II.interest income received from foreigners
III.interest payments on home mortgage loans
IV.interest payments on home improvement loans

• A)all of the above
• B)I and II only
• C)I and III only
• D)I, II, and III only

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Definitions:

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and receivables).

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Current Ratio

A financial ratio that gauges a firm's capacity to meet its short-term debts or obligations due within the next year.