Which of the Following Ratios Would Be of Primary Importance

question 66

Multiple Choice

Which of the following ratios would be of primary importance to a creditor in deciding to extend long-term credit?

• A)Current ratio
• B)Debt/equity ratio
• C)Inventory turnover
• D)Earnings per share

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Definitions:

Local Ordinance

A law or regulation established by a city or town government.

Municipal Ordinance

Laws or regulations passed by municipal governments to govern matters within their jurisdiction.

Statute

A written law passed by a legislative body at the federal or state level that governs and dictates actions.

Normandy

A geographic region in France, known for its historical events, especially the D-Day invasion during World War II.