Which of the Following Would Indicate an Improvement in a Company's

question 58

Multiple Choice

Which of the following would indicate an improvement in a company's financial position, holding other things constant?

• A) The inventory and total assets turnover ratios both decline.
• B) The debt ratio increases.
• C) The profit margin declines.
• D) The times-interest-earned ratio declines.
• E) The current and quick ratios both increase.

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Definitions:

Adaptive System

A system that is capable of adjusting its behavior or structure based on changes in its environment or internal state.

Regulated Market

A market that is controlled or supervised by rules and laws designed to protect consumers and fair competition.

Offeree

The person or party to whom an offer is made in a contract situation.

Mutual Promises

Agreements where both parties commit to perform or refrain from specific actions, forming the basis of a contract.