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

question 1

Multiple Choice

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

• A) the current and quick ratios both increase.
• B) the inventory and total assets turnover ratios both decline.
• C) the debt ratio increases.
• D) the profit margin declines.
• E) the ebitda coverage ratio declines.

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Definitions:

Test Bias

A flaw in a test that produces systematically different outcomes for particular groups of individuals, undermining the test's fairness and accuracy.

Systematically Underestimated

Consistently underestimated in a methodical manner, often resulting in inaccurately low assessments or expectations.

Test Bias

The presence of unfair, systemic advantages or disadvantages in a test that affect the performance of certain groups of people.

School Performance

An evaluation of a student's academic achievement in educational settings, often measured by grades and test scores.