Experts Suggest That If You Can Start Saving at Least

question 20

Multiple Choice

Experts suggest that if you can start saving at least ______ of your income with your first job,you will never get used to having and spending that ______ and will not miss having it in your pocket.

• A) 2%
• B) 90%
• C) 10%
• D) 30%

Understand the concept and criteria of a holder in due course.

Analyze the rights and defenses available to and against a holder in due course.

Distinguish between different types of indorsements and their implications.

Comprehend the negotiation process of negotiable instruments.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

EBITDA Coverage Ratio

Similar to the times-interest-earned ratio, but it recognizes that many firms lease assets and also must make sinking fund payments. It is found by adding earnings before interest, taxes, depreciation, and amortization and lease payments, then dividing this total by interest charges, lease payments, and sinking fund payments over 1 minus the tax rate.

TIE

Times Interest Earned, a financial metric indicating how well a company can meet its interest obligations based on current earnings.

DSO

Days Sales Outstanding, a measure of the average number of days that a company takes to collect payment after a sale has been made.