Which of the Following Discoveries Through the Use of Analytical

question 149

Multiple Choice

Which of the following discoveries through the use of analytical procedures would most likely indicate a relatively high risk of financial failure?

• A) a decline in gross margin percentages
• B) an increase in the balance in fixed assets
• C) an increase in the ratio of allowance for uncollectible accounts to gross accounts receivable, while at the same time accounts receivable turnover also decreased
• 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:

Preventive Measures

Strategies or actions taken in advance to reduce the risk of harm or to prevent an undesirable outcome.

Suspected Abuse

A situation in which there are reasons to believe that someone, often a child or vulnerable adult, has been harmed or is at risk of harm.

Emotional Abuse

A form of abuse characterized by a person subjecting or exposing another to behavior that may result in psychological trauma, including anxiety, chronic depression, or post-traumatic stress disorder.

Identify

To establish or indicate who or what someone or something is.