Which of the Following Would, Generally, Indicate an Improvement in a Company's

question 61

Multiple Choice

Which of the following would, generally, indicate an improvement in a company's financial position, holding other things constant?

• A) The total assets turnover decreases.
• B) The TIE declines.
• C) The DSO increases.
• D) The EBITDA coverage ratio increases.
• E) The current and quick ratios both decline.

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Definitions:

Corporate Employees

Individuals who are employed by corporations and contribute to its operations and success through their work.

Corporate Securities

Refers to financial instruments issued by corporations, such as stocks and bonds, representing an ownership stake or a debt obligation.

Ponzi Scheme

A fraudulent investing scam promising high rates of return with little risk to investors, which generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities.

Sarbanes-Oxley Act

An act that criminalizes specific nonaudit services when provided by a registered accounting firm to an audit client; also increases the punishment for a number of white-collar offenses. Also known as the Public Company Accounting Reform and Investor Protection Act of 2002.