The Best Evidence Rule Means That

question 157

Multiple Choice

The best evidence rule means that

• A) the side with the strongest evidence wins.
• B) only the original document or item is admissible.
• C) only the most important evidence may be presented.
• D) no circumstantial evidence is allowed.

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Definitions:

Operating Cycle

The duration of time from the acquisition of inventory to the collection of cash from receivables, reflecting the company's efficiency in using its assets.

Times Interest Earned

A financial ratio that measures a company's ability to cover its interest charges with its earnings before interest and taxes (EBIT).

Debt-To-Equity Ratio

A calculation to determine a firm's financial leverage by dividing the total amount of its liabilities by the equity of its shareholders.

Equity Multiplier

A financial ratio indicating the proportion of a company's assets that are financed by stockholders’ equity, showing the level of financial leverage.