Banks use debt-to-income ratios in order to:A.decide whether they need to look at a borrower's credit history before making a loan.B.see how much money a borrower earns compared to how much he or she has borrowed.C.analyze the value of a borrower's home and cars to be used as collateral for a loan.D.see how often a borrower has missed payments on other loans in the past.

Banks and credit card companies use credit scores to:A.calculate the amount of compound interest on an account.B.determine whether a person's debts can be forgiven in bankruptcy.C.seize people's property if they fail to pay back loans in a timely manner.D.decide whether an applicant is likely to pay back borrowed money.

Using financial analysis to assist users in answering the 'why' questions requires a thorough understanding of: A. ratio measurements only. B. all ratio measurements and how they interrelate. C. only some of the ratio measurements. D. preparation of the financial statements onl

ratios measure a company's ability to turn assets into cash to pay its short-term debt.

What does the debt to equity ratio evaluate?1 pointWhat proportion of debt or equity a company is using to finance its assetsWhat proportion of equity a company is using to finance its profitsA company’s debt as a percentage of total liabilities and owner’s equity amount

Banks and lenders use credit scores to determine . . .The likelihood that someone is able to repay debtHow much collateral someone has available to put up for a loanA person's financial responsibilityHow successful someone is