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Finance Questions

1. which ratio's do you feel would be a MUST in the mortgage crisis??
2. isn't an extraordinary event posted "NET" of taxes?
3. the financial impacted is the P&, where on the P&L can we see an extraordinary event listed?
4. solvency ratio's are used mostly by banks?? What ratio's could have been used to prevent some of the financial's hiccups we are seeing today??
5. working capital impacts what financial decisons?
6. sales are trended commonly, also operating expenses are trended. What are operating expenses?
7. what are examples of "elements" being analyzed/trended?
8. how many years is ideal for a trend?
9. financial are top / down?
10. what financial do these extraordinary items impact?
11. how is a "discontinued operation" distinguished...what separates this from the normal operation??
12. common stock is the first type of offered stock. Which is next?
13. which acct(s) are impacted when monies are withdrawn from a business
14. What is an "operating lease
15. what is a "capital lease"?
16. When is it the RIGHT time to "lease", or perhaps "buy"?

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This response addresses the queries posed in 944 Words, and APA References

Finance - Sample General Questions

1. The mortgage crisis occurs because of easy lending terms and liquidity in the global credit market. The liquidity and solvency ratios should be used to prevent an investor from the mortgage crisis. To know the creditworthiness of the borrower, the lender should use the solvency ratio.

2. The extraordinary item is posted NET of taxes because it is disclosed in a separate section in the income statement of the company. The extraordinary items are reported as net of the applicable taxes. It helps to determine the total effect of this extraordinary item on the financial statements (Whittington & Delaney, 2007).

3. The extraordinary items affect the financial statements. In P&L, the extraordinary events are shown in a separate section because it doesn't occur frequently. These items are shown after the profit after tax from ordinary items in the P&L (Reporting Financial Performance).

4. The solvency ratio is used by the banks to know the long term solvency of the business. It provides a tool to measure the relationship between total assets and total external liabilities of a firm. To prevent the financial hiccups, an investor can use price earning and debt equity ratios. The price earnings ratio will provide the true value that should be paid for the shares of a company. The debt equity ratio provides a measurement of relationship between long term debts and shareholders' wealth.

5. Working capital impacts to the following financial decisions -

? Decisions related to ...

Solution Summary

The response addresses the queries posted in 944 Words, APA Reference.