Which of the following is not a financial indicator for assessing a supplier's financial position in relation to equity/debt relationship?
A) Cash flow/investments.
B) Long term debt/fixed assets.
C) Equity/total assets.
D) Earning before tax.

Question

Which of the following is not a financial indicator for assessing a supplier's financial position in relation to equity/debt relationship? 
A) Cash flow/investments. 
B) Long term debt/fixed assets. 
C) Equity/total assets. 
D) Earning before tax.

Quizplus · Accepted Answer

Earnings before tax is a measure of profitability and does not provide information on a supplier's equity/debt relationship. A, B, and C are all financial indicators that provide insight into a supplier's financial position in relation to their equity/debt relationship.

Which of the Following Is Not a Financial Indicator for Assessing