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The Beaver Study Indicated the Following Ratio (Ratios)to Be the Best

Question 18

Multiple Choice

The Beaver Study indicated the following ratio (ratios) to be the best for forecasting financial failure:


A) cash flow/total debt.
B) net income/total assets.
C) total debt/total assets.
D) cash flow/total debt and net income/total assets.
E) all of the answers are correct.

Correct Answer:

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