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:

Average Service Rate

A measure of how quickly a service provider or system can perform its intended function, typically evaluated over a period to assess efficiency.

Average Service Time

The average duration needed to complete a particular service or process.

M/M/S

A queuing model notation representing a system with exponential service times, exponential interarrival times, and S servers.

Average Number

Represents the mean or central value of a set of numbers, calculated by dividing the sum of all the values by the number of values.