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

question 19

Multiple Choice

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

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

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Definitions:

Symmetry

A property of shapes or designs where one half is a mirror image of the other half.

Bimodal

Describing a distribution that has two different modes or peaks in its frequency of occurrence.

Frequency

The number of times an event occurs within a given data set.

Skewed

Skewed refers to a distribution that is asymmetrical, where data points are more concentrated on one side of the scale, leading to a long tail on the opposite side.