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Management May Feel Pressure to Maintain Debt Covenants _______

Question 22

Multiple Choice

Management may feel pressure to maintain debt covenants _______.


A) if a client is relying heavily on debt financing and struggling to make debt payments
B) if a client is relying heavily on equity financing and struggling to make equity payments
C) both the liquidity and solvency positions have improved
D) the accounts receivable turnover ratio has increased

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