Paying a Loan Off Much Quicker Than Scheduled Is One

question 144

True/False

Paying a loan off much quicker than scheduled is one way to build a good credit rating.

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Property Turnover

A measure of how efficiently a company generates revenue from its assets, often by comparing sales to the average value of property, plant, and equipment.

Current Asset Turnover

A financial metric that measures how efficiently a company uses its current assets to generate revenue, revealing asset management effectiveness.

Interest Coverage

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt.