The Ratio of a Company's Book Value of Pledged Assets

question 178

Multiple Choice

The ratio of a company's book value of pledged assets to the book value of its secured liabilities is called the

• A)Pledged assets to secured liabilities
• B)Return on total assets
• C)Debt ratio
• D)Profit margin
• E)Times secured liabilities earned

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Definitions:

Variable Overhead Efficiency Variance

A calculation used to measure the efficiency with which a firm uses its variable overhead resources, based on the difference between actual and expected usage.

Unfavorable

A term describing outcomes that are worse than expected or budgeted, often used in financial and operational analysis.

Favorable

A term used in financial analysis to indicate that actual performance is better than expected or budgeted performance.

Overapplied

A situation where the overhead applied to products is greater than the actual overhead incurred.