Which of the Following Is the Least Important for Assessing

question 35

Multiple Choice

Which of the following is the least important for assessing the company's profile for purposes of a line of credit?

• A)Current ratio
• B)Debt to equity ratio
• C)Price to earnings ratio
• D)Receivables turnover

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Definitions:

General Journal

A book or document where all financial transactions of a business are initially recorded, prior to being transferred to specific accounts in the general ledger.

Internal Transactions

Financial transactions that occur within an entity, affecting its internal accounts without involving external parties.

Partial Payment

A payment made that is not the full amount owed at the time, typically agreed upon in advance between debtor and creditor.

Cash Receipts Journal

A specialized accounting journal that tracks all cash inflows or money received by a business.