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A Bank That Wants to Examine the Operating Efficiency of a Borrower

Question 81

Multiple Choice

A bank that wants to examine the operating efficiency of a borrower would most likely examine which of the following ratios?


A) Cost of goods sold ÷ Average inventory
B) Income before interest and taxes ÷ Interest payments
C) Cost of goods sold ÷ Net sales
D) Current assets ÷ Current liabilities
E) All of the options are correct.

Correct Answer:

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