Which of the following would generally indicate an improvement in a company's financial position,holding other things constant?
A) The TIE declines.
B) The DSO increases.
C) The quick ratio increases.
D) The current ratio declines.
E) The total assets turnover decreases.

Question

Quizplus · Accepted Answer

An increase in the quick ratio indicates an improvement in a company's ability to pay its short-term obligations using its most liquid assets (cash and marketable securities), while excluding inventory and prepaid expenses. This is generally viewed as a positive sign for a company's financial position. The other options listed would generally indicate a decline in a company's financial position.

Which of the Following Would Generally Indicate an Improvement in a Company's