Which of the Following Ratios Is Least Likely to Assist

question 26

Multiple Choice

Which of the following ratios is least likely to assist the auditor in determining whether the client 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:

Suicide Prevention Programs

Initiatives and interventions designed to reduce the incidence of suicide through awareness, education, and support strategies.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.

Mixed Feelings

Mixed feelings describe a state of having conflicting emotions or thoughts about a particular situation or person.

Death Darers

Individuals who engage in behavior that has a significant risk of death, but without a definite intent to die; they may have ambivalence towards living or dying.