As a Stockholder, Charlotte Is Concerned About the Level of Long-Term

question 114

Multiple Choice

As a stockholder, Charlotte is concerned about the level of long-term debt her company has.Which ratio would you recommend for determining whether or not her company has too much debt?

• A) return on owners' equity
• B) debt turnover
• C) acid-test ratio
• D) debt-to-owners' equity
• E) equity-to-debt return

---

Definitions:

Functional Pattern

An organizational structure in communication that arranges information according to its purpose or function.

Problem-solving Pattern

A methodical approach employed in identifying, analyzing, and addressing issues or challenges.

Compare-contrast Pattern

A method of organizing text that discusses the similarities and differences between two or more subjects.

Direct Pattern

A direct pattern in communication involves presenting the main idea or message at the beginning, followed by supporting details, often used for clear and straightforward messages.