Which One of the Following Ratios Is the Most Correlated

question 2

Multiple Choice

Which one of the following ratios is the most correlated to default risk?

• A)Account receivables collection period
• B)Inventory collection period
• C)Debt to equity ratio
• D)Profit margin

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Definitions:

Crine

Relating to or denoting glands that secrete hormones or other products directly into the blood (endocrine) or outwardly through ducts (exocrine).

Pan-

A prefix meaning "all" or "every", often used in medical and scientific terminology.

Tachy-

A prefix in medical terminology indicating rapid or accelerated, often used to describe abnormally fast heart rates, like in tachycardia.

Megalo-

A prefix meaning large or exaggerated in size or scope.