Which of the Following Ratios Is Difficult for Creditors of a Firm

question 124

Multiple Choice

Which of the following ratios is difficult for creditors of a firm to analyze because the data are usually not available in published financial statements?

• A) Financial leverage.
• B) Average payment period.
• C) Quick ratio.
• D) Average age of inventory.

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Definitions:

Experienced Responsibility

The feeling or belief by employees that they are responsible and accountable for their job tasks and outcomes.

Outcomes of Work

The results generated from performing tasks or jobs, which can include products, services, and changes in organizational or individual status.

Attributional Explanation

The process of interpreting events and determining the causes of an individual's behavior.

Negative Attributions

The tendency to explain the behavior of others based on internal, stable, and negative characteristics.