Having Your Pay Sent Directly to Your Bank Rather Than

question 39

Multiple Choice

Having your pay sent directly to your bank rather than receiving a written check is a type of

• A)shared accounting.
• B)direct deposit.
• C)check cancellation.
• D)NOW account.

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Definitions:

Financial Position

The status of a company or individual's assets, liabilities, and equity at a specific point in time, summarizing the economic resources and obligations.

EBIT

Earnings Before Interest and Taxes - a measure of a firm's profitability that excludes interest and income tax expenses.

Accounts Payable

Accounts Payable is the amount of money a company owes its suppliers for goods or services received but not yet paid for.

Basic Earning Power Ratio

A financial ratio that shows how effectively assets are being used to generate earnings before the influence of taxes and financing costs.