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- Which of the following decreases owners equity? A. investments by owners B. losses C. gains D. short-term loansTrue or false? Interest received on loans made to borrowers is an example of an investing activity.Many types of debt including auto loans, student loans and credit debt are securitized. The practice of securitization helps provide extra funding to those markets and reduces the risk of lending by pooling the debt. a) true b) false
- Based on your understanding of the fAactors that affect the cost of money, Identify which of the following statement is true. a. higher inflation leads to lower interest rates. b. Interest is the price paid to borrow funds. c. Higher risk leads to lower interest rates.When is debt to asset ratio important when raising moneyHow to do calculate good debt percentage as well as net return percentage with the data above?Please explain the formula used in calculating good debt percentage as well as net return percentage.
- If debt creates additional expense without enough benefit through cost savings, income or capital gain, then it is not worth it. True or False?Credit risk is defined as the inability of _________to meet their debt obligations. For _______the risk includes_____ of principal and interest, cash flow ________, and_________collection costs. Thus, higher credit risk is associated with higher ______ costs.1. Which of the following is not a reason for the issuance of long-term liabilities? a. Debt financing offers an income tax advantage.b. Ownership interest is diluted.c. Debt may be the only available source of funds.d. Debt financing may have a lower cost.
