Which of the Following Ratios Is Least Useful in Evaluating

question 179

Multiple Choice

Which of the following ratios is least useful in evaluating a company's ability to pay its current debts as they become due?

• A)Current ratio
• B)Debt-to-equity ratio
• C)Debt service coverage ratio
• D)Acid-test ratio

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Definitions:

Continuous Process

A production process that operates without interruption for extended periods, commonly used in chemical and energy industries.

Discrete Product-Producing Process

A manufacturing or production process that outputs distinct, separate goods, often in a batch or serialized manner.

Human-Machine Interface

The user interface in industrial control systems that allows humans to interact, monitor, and communicate with machinery and processes.

Actuators

Devices that convert electrical signals into physical movement or action, often used in industrial machinery to move or control mechanisms.