Which of the Following Indicates a Firm Will Be Able

question 105

Multiple Choice

Which of the following indicates a firm will be able to pay its bills in a satisfactory manner?

• A) A debt to equity ratio of 1:1 or higher
• B) An activity ratio of 5:1 or less
• C) A net income to common shares outstanding ratio of 1:1 or less
• D) A current ratio of 2:1 or higher
• E) A profitability ratio of 5:1 or higher

Implement effective review strategies to combat the forgetting curve and improve memory retention.

Adapt listening and note-taking approaches to improve performance in challenging subjects or courses.

Employ collaboration and communication skills within study groups to fill in knowledge gaps and reinforce learning.

Integrate visual learning strategies with traditional note-taking systems to cater to right-brain dominant learners.

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Definitions:

Profits

The financial gain made in a transaction or operation after all expenses are subtracted from revenue.

Licenses

Permits granted by an authority to an individual or organization to engage in a particular activity or occupation.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields.

Real Property

Land and anything permanently attached to it, like buildings, along with the rights associated with the ownership of land.