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
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
