DEBT RATINGS Definition

Bookmark and Share

DEBT RATINGS are the creditworthiness of a borrower as measured in the U.S. by debt rating agencies Moody's and Standard and Poor's. A triple A (AAA) rating means that there is almost no likelihood of the borrower failing to pay.

Learn new Accounting Terms

BASIC EARNINGS POWER (BEP) is useful for comparing firms in different tax situations and with different degrees of financial leverage. This ratio is often used as a measure of the effectiveness of operations. Basic Earning Power measures the basic profitability of Assets because it excludes consideration of interest and tax. This ratio should be examined in conjunction with turnover ratios to help pinpoint potential problems regarding asset management. Formula: EBIT / Total Assets

ASSUMPTION, generally, is one or more beliefs or unconfirmed facts that contribute to a conclusion. Specifically, it is the act of taking on the responsibility or assuming the liabilities of another.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.