Which of the Following Combinations of Ratios Is Preferable

question 157

Multiple Choice

Which of the following combinations of ratios is preferable?

• A)A low current ratio and a high debt ratio
• B)A high current ratio and a low debt ratio
• C)A low current ratio and a low debt ratio
• D)A high current ratio and a high debt ratio

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Definitions:

Stock Certificates

Physical documents that represent ownership of a particular number of shares in a corporation.

Semi-permanent

Referring to something not designed to last indefinitely but also not intended for quick disposal or replacement; having a medium-term duration.

Work

The exertion of effort towards achieving a goal, often associated with professional or employment activities but also applicable to tasks and responsibilities.

Problem-solving

The process of identifying a problem, developing possible solutions, and choosing and implementing the most effective solution.