Which of the Following Generally Indicates a Positive Change

question 86

Multiple Choice

Which of the following generally indicates a positive change?

• A)Earnings per share decreases.
• B)The debt service coverage decreases.
• C)The acid-test ratio decreases.
• D)The number of days' sales in inventory decreases.

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Definitions:

Total Debits

In accounting, this refers to the total sum of all debit entries recorded in all accounts for a given period.

Total Credits

The sum of all credit entries recorded in the accounting books of a business, reflecting the total value of transactions decreasing assets or increasing liabilities and equity.

Beginning Balance

The sum of funds in an account at the beginning of a new accounting cycle, transferred from the conclusion of the last period.

Chronological Record

A method of recording events or transactions in the order of their occurrence in time.