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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