Question: identify the statement that would represent an accounting risk from a lenders perspective.? A-assets used as security against loans could be overvalued due to incorrect

identify the statement that would represent an accounting risk from a lenders perspective.?

A-assets used as security against loans could be overvalued due to incorrect application of accounting standards

B-Profits from operational activities are insufficient to provide adequate interest cover going forward

C-Retained profits from the period are not sufficient to meet dividend expectations of shareholders

D-Cash flow is not sufficient to meet loan repayments

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!