Which of the Following Would Be Most Useful to You

question 17

Multiple Choice

Which of the following would be most useful to you in deciding whether or not to make a short-term loan to a firm?

• A)return on assets
• B)return on sales
• C)current ratio
• D)EPS

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Definitions:

RRIF

Registered Retirement Income Fund, a tax-deferred retirement plan in Canada that an individual can use to generate income from the assets inside their Registered Retirement Savings Plan.

Compounded Annually

Interest calculated once a year on both the initial principal and the accumulated interest from previous periods.

Compounded Monthly

Interest on an investment or loan calculated and added to the principal balance monthly, where each month's interest calculation includes the previous month's interest.

Deferred Annuity

A financial security provided by insurers that holds back the distribution of income, either through regular installments or a one-time sum, until it's opted for by the investor.