Which of the following is assessed using the debt?
ratio?
A.
net income
B.
profitability
C.
revenues
D.
risk of default
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Accounting
Which of the following is assessed using the debt?ratio?
A.
net income
B.
profitability
C.
revenues
D.
risk of default
Answer & Explanation
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3.8 Ratings (571 Votes)
D This option is correct Because the default risk is assessed using the loan ratio The default risk is the possibility that a company or an individual may be unable to make the required payments on the debt obligation Investors have a default risk in all types of credit extensions
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