Question $21$

Select the correct statement

A $.$ The larger the debt to asset ratio, and total ratio the better

B$.$ The larger the net income ratio, the better

C $.$ All answers above are incorrect

D $.$ The smaller your interest coverage means you are covering your interest expenses

Question $22$

What happens in the income statement and cash fow statements is reflected on the balance sheet because

A$.$ the net worth will not change

B$.$ the value debt deduct from the net worth.

C$.$ the earning affects the asset value but not the values of debts

D$.$ the earning and expenses and the other cash flows affect the asset values, and the values of debts $,$ and thus the net worth

Question $23$

The bases can affect investment decisions include all of the following except

A$.$ Availability

B$.$ Marker predictability

c$.$ Representativeness

d$.$ overconfidence

Question $26$

The percentage of the purchase price paid upfront as the down payment will determine the The principal balance on the mortgage determines the

A$.$ APR, escrow amount

B$.$ variable rate, value of the home

C$.$ amount that is borrowed; monthly mortgage payment

D$.$ None of the answers apply.

Question $27$

Risk is measured by the difference belween actual returns and average $($expected$)$ returns.This dilference is referred to as the

A$.$ risk assessment

B$.$ Rate of return

C $.$ Expected deviation

D$.$ Standard deviation