Which of the Following Generally Indicates a Positive Change

question 51

Multiple Choice

Which of the following generally indicates a positive change?

• A) Earnings per share decreases
• B) The debt to total assets ratio increases
• C) The acid test ratio decreases
• D) The return on equity increases

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Definitions:

Specific Assets

Specific assets are identifiable and tangible assets like machinery, land, or buildings that a company owns and utilizes in its operations.

Board Of Directors

A group of individuals elected by the shareholders of a corporation to oversee and make decisions on behalf of the corporation.

Contractual Interest Rate

The agreed-upon rate of interest in a loan or bond contract, which determines the amount of interest the borrower will pay to the lender.

Total Face Value

The nominal or principal amount indicated on financial securities, such as bonds and some currencies, at issuance.