All of the Following Ratios Are Used in the Calculation

question 22

Multiple Choice

All of the following ratios are used in the calculation of a company's Z-value EXCEPT

• A) working capital/total assets.
• B) retained earnings/total assets.
• C) current assets/current liabilities.
• D) market value of equity/total liabilities.
• E) sales/total assets.

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Definitions:

Primary Mental Abilities

Fundamental cognitive skills including numerical and verbal abilities, spatial relations, and memory that are thought to be essential for intelligence.

Inductive Reasoning

Type of logical reasoning that moves from particular observations about members of a class to a general conclusion about that class.

Emotions

Subjective reactions to experience that are associated with physiological and behavioral changes.

Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.