Q.1. Certain barriers exist as to the adoption of international accounting standards for financial reporting by...

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Finance

Q.1. Certain barriers exist as to the adoption of internationalaccounting standards for financial reporting by certain U.S.companies. These barriers include:
A.
governance issues.
B.
global comparability.
C.
maintenance of the standards.
D.
funding of the effort.
Q.2. Lending agreements often have a provision that requires theDSCR to be maintained below a certain figure.
True
False
Q.3. If total operating revenues are $20,000 and the operatingmargin is 10%, what is the amount of operating income?
A.
$100
B.
$1,000
C.
$2,000
D.
$200
Q.4. Solvency ratios reflect the ability of the organization topay its annual debt obligations, including:
A.
annual interest and principal obligations on its long-termdebt.
B.
annual interest and principal obligations on both its long-termand short-term debt.
C.
annual principal obligations only on its long-term debt.
D.
None of these is correct.
Q.5. The acronym EBIT is a broad measure in common use and iswidely used by credit analysts.
True
False

Answer & Explanation Solved by verified expert

4.0 Ratings (462 Votes)

Q 1 D Finding of the effortThe adoption of international accounting standards for financialreporting by certain US companies depends on voluntary financialcontributions from industry the international audit firms and thefinancial community This created at least the perception of a riskthat the financial backers might gain undue influence over thestandardsetting processQ2 TrueExplanation Debtservice coverage ratioDSCR is a See Answer

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Q.1. Certain barriers exist as to the adoption of internationalaccounting standards for financial reporting by certain U.S.companies. These barriers include:A.governance issues.B.global comparability.C.maintenance of the standards.D.funding of the effort.Q.2. Lending agreements often have a provision that requires theDSCR to be maintained below a certain figure.TrueFalseQ.3. If total operating revenues are $20,000 and the operatingmargin is 10%, what is the amount of operating income?A.$100B.$1,000C.$2,000D.$200Q.4. Solvency ratios reflect the ability of the organization topay its annual debt obligations, including:A.annual interest and principal obligations on its long-termdebt.B.annual interest and principal obligations on both its long-termand short-term debt.C.annual principal obligations only on its long-term debt.D.None of these is correct.Q.5. The acronym EBIT is a broad measure in common use and iswidely used by credit analysts.TrueFalse

	A.	governance issues.
	B.	global comparability.
	C.	maintenance of the standards.
	D.	funding of the effort.

	A.	annual interest and principal obligations on its long-termdebt.
	B.	annual interest and principal obligations on both its long-termand short-term debt.
	C.	annual principal obligations only on its long-term debt.
	D.	None of these is correct.