If Management Wishes to Know the Ability to Pay Off

question 71

Multiple Choice

If management wishes to know the ability to pay off the upcoming debts of a business,they could use the:

• A)debt to total assets.
• B)current ratio
• C)inventory turnover ratio.
• D)times interest earned.

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Definitions:

Situationist

Pertaining to the theory that behavior is determined more by situations and environmental factors than by personal traits.

Personal Style

An individual's unique expression of themselves through their choices in clothing, communication, behavior, and preferences.

Situationism

The theory that behavior is determined more by situations and environmental factors than by personal traits or motivations.

Relative Consistency

The degree to which an individual's behavior remains stable in different contexts over time.