The Ideal Candidate for a Bank Loan Is a Firm

question 13

True/False

The ideal candidate for a bank loan is a firm with a strong cash flow, low leverage, audited financial statements, good management, and a healthy balance sheet.

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Definitions:

Assets

Resources owned or controlled by a person or company, expected to bring future economic benefits.

Credits

Accounting entries that increase liabilities or equity on the balance sheet, or decrease an asset or expense account on the income statement.

Dividends Accounts

Dividends Accounts represent the financial accounts used by a company to record the dividends paid out to shareholders, reflecting the distribution of earnings.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which must be settled over time through the transfer of money, goods, or services.