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A Bank Wants to Examine How Well a Customer Controls

Question 138

Multiple Choice

A bank wants to examine how well a customer controls their expenses.They are most likely to look at which of the following ratios?


A) Wages and salaries/Net sales
B) Accounts receivables/(Annual credit sales/360)
C) Net income after taxes/Net sales
D) Income before interest and taxes/Interest payments
E) (Current assets - Inventory) /Current liabilities

Correct Answer:

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