Which of the Following, When Discovered Through the Use of Analytical

question 31

Multiple Choice

Which of the following, when discovered through the use of analytical procedures, would indicate a relatively high risk of financial failure?

• A) an increase in the balance in fixed assets
• B) a decline in gross margin percentages
• C) an increase in the ratio of allowance for uncollectible accounts to gross accounts receivable, while at the same time accounts receivable turnover decreases
• D) a higher than normal ratio of long-term debt to net worth, as well as a lower than average ratio of profits to total assets

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Definitions:

Lincoln

The 16th President of the United States, Abraham Lincoln, who led the nation during the Civil War and is known for issuing the Emancipation Proclamation.

Pay for the War

Refers to the methods and strategies used by governments to finance military conflicts, often involving taxes, bonds, or borrowing.

Desertion

The act of abandoning a duty or post, especially in military service, without permission and with no intention of returning.

Union Army

The land force that fought for the Northern states during the American Civil War.