Which of the Following Financial Factors Is Most Likely to Be

question 34

Multiple Choice

Which of the following financial factors is most likely to be a cause of a going-concern problem?

• A)Return on assets is substantially lower than return on equity.
• B)Inventory turnover is lower than the industry average.
• C)The current ratio exceeds the quick ratio.
• D)Fluctuating net income growth.

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Definitions:

Demand for Labor

The total amount of labor that employers in the economy are willing to hire at a given wage rate, influenced by factors such as productivity, economic conditions, and regulatory environment.

Marginal Product

The marginal product is the additional output that is produced by using one more unit of a particular input, holding all other inputs constant, in the process of production.

Mechanics

The branch of physics that deals with the motion of objects and the forces that affect that motion.

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, keeping other inputs constant.