Which of the Following Ratios Is Difficult for the Creditors

question 147

Multiple Choice

Which of the following ratios is difficult for the creditors of a firm to analyze from the published financial statements?

• A) debt equity ratio
• B) average payment period
• C) quick ratio
• D) total asset turnover

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Definitions:

Managers

Managers are individuals responsible for planning, leading, organizing, and controlling resources and teams to achieve organizational goals.

Pygmalion

The phenomenon where higher expectations from leaders or teachers lead to an increase in performance among students or employees.

Specific Groups

Particular segments of a population distinguished by shared characteristics, interests, or purposes.

Similarity Error

The mistaken evaluation of others based on their resemblance to oneself, often leading to biased decisions or judgments.