Which of the Following Ratios Is Least Likely to Assist

question 65

Multiple Choice

Which of the following ratios is least likely to assist the auditor in determining whether the entity is experiencing financial difficulties?

• A)Net worth/total liabilities.
• B)Cash/total assets.
• C)Total liabilities/total assets.
• D)Net income before taxes/net sales.

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Definitions:

Sender

The person or entity that initiates a message or communication.

Conscientious

Describes a person who is diligent, careful, and committed to doing their work or duties well.

Extraverted

Describing someone who is outgoing, socially confident, and thrives on interaction with others.

Psychological Safety

A condition within a team where members feel safe to take risks, voice their opinions, and be creative without fear of punishment or ridicule.