Which of the following would indicate a reduced ability to meet short-term obligations?
A) An increase in the current ratio
B) A reduction in days in accounts receivable
C) An increase in average payment period
D) An increase in days cash on hand
Correct Answer:
Verified
Q6: The formula for return on assets is
A)
Q7: The liquidity ratio that measures the number
Q8: Average payment period measures
A) The number of
Q9: The formula for days in accounts receivable
Q10: The formula for the acid ratio is
A)
Q12: The capital structure ratio that measures _
Q13: Debt service coverage measures
A) The proportion of
Q14: The formula for debt service coverage is
A)
Q15: Which of the following indicates an improvement
Q16: The DuPont Analysis formula is
A) Total margin
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