Congress Considers a Bill That Would Eliminate the Mortgage Interest

question 123

Multiple Choice

Congress considers a bill that would eliminate the mortgage interest deduction for individuals. For the housing industry, this is an example of

• A) tax risk.
• B) interest rate risk.
• C) business risk.
• D) event risk.

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue, calculated by dividing sales or revenue by the average assets.

Net Sales

The amount of revenue from sales transactions minus returns, allowances for damaged or missing goods, and discounts.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, representing the resources owned by a company to produce value.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period.