Which of the Following Increases the Chances of Business Failures

question 3

Multiple Choice

Which of the following increases the chances of business failures?

• A) increasing provision for doubtful accounts
• B) current ratio of 2:1
• C) liabilities that exceed market value of assets
• D) book value of assets that exceed liabilities

---

Definitions:

Time Of Payment

The specific period or date by which payment for goods or services received must be made.

Voidable Instrument

A financial document or contract that is valid but may be annulled by one or more of the parties to the contract.

IOU Instrument

A document acknowledging a debt or an obligation to pay a specified sum of money to another party.

Payable On Demand

A financial agreement or instrument that requires payment when requested by the holder.