Minnie Knows That Double Entry Has a Lot of Short-Term

question 302

Multiple Choice

Minnie knows that Double Entry has a lot of short-term debt coming due in the next year, and wants to make sure that the company will have the ability to make the required payments. Given a troubling downturn in construction activity over the past couple of months, she is not confident that Double Entry can count on selling its current inventory of doors before the debt comes due. Which of the following ratios would be most relevant to Minnie?

• A) current ratio
• B) debt to equity ratio
• C) return on sales
• D) acid-test ratio

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Definitions:

Human Relationships

The connections, associations, or interactions between individuals or groups of people, ranging from fleeting to enduring affiliations.

Abstract Principles

Fundamental ideas or concepts that are not tied to specific instances or physical objects.

Temperament Dimensions

Underlying personality traits that determine an individual's behavioral style and emotional responses from a young age.

Low Activity Level

A trait or condition characterized by a lower than average rate of physical movement or actions.