INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 91

Short Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
Using the [ simple interest method | add-on method ] would be less expensive for the borrower when determining the total to be paid to the lender.

---

Definitions:

Common Size Income Statement

An income statement in which each line item is expressed as a percentage of sales revenue, facilitating comparison across companies or periods.

Percent of Assets

A measure or indicator expressed as a percentage of a company's total assets.

Interest Coverage Ratio

A financial metric used to determine how easily a company can pay interest on outstanding debt with its current earnings before interest and taxes.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets.