Which of the Following Is NOT a Key Ratio in the Prediction

question 30

Multiple Choice

Which of the following is NOT a key ratio in the prediction of bankruptcy, as developed by Edward Altman?

• A)Debt-to-equity ratio
• B)Current ratio
• C)Retained earnings as a percent of total assets
• D)Total assets
• E)EBIT to total assets

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Definitions:

Paranoid

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, typically elaborated into an organized system.

Schizotypal

A personality disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.

Psychoticism

Extreme openness to experience.

Openness

A personality dimension characterized by a willingness to engage with new ideas, experiences, and a broad range of interests.