Scenario - Katrina Aldridge

question 81

Multiple Choice

Scenario - Katrina Aldridge
The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is preparing for that audit and is also preparing her budget for the coming year.
-Katrina has also requested that the financial ratios be calculated and analyzed for her. Which of the following ratios will give her the best information for evaluating liquidity?

• A) Profit margin on sales
• B) Current ratio
• C) Conversion ratio
• D) Return on assets
• E) None of these.

---

Definitions:

Local Nobles

Local nobles are distinguished individuals or families of high social rank, typically holding hereditary titles or positions, within a specific locality or region.

Roman Civil Law

A legal system originating from Ancient Rome, featuring codified laws and emphasizing legal principles over judicial decisions, foundational to many modern legal systems.

Law of Equity

A body of law that supplements formal statutes with principles of fairness, justice, and conscience in legal judgments and remedies.

Law Merchant

Rules developed by the merchant guilds and the source of common law relating to negotiable instruments such as cheques and promissory notes.