Which One of the Following Is Not a Major Category

question 105

Multiple Choice

Which one of the following is not a major category for long-term assets?

• A)Receivables
• B)Property,plant,and equipment
• C)Intangibles
• D)Investments

---

Definitions:

Acid-test Ratio

A financial metric that evaluates a company's ability to pay off short-term liabilities with its most liquid assets, excluding inventory.

Debt-to-equity Ratio

An indicator showing the comparative levels of shareholders' equity and debt utilized in the financing of a company's assets.

Times Interest

A financial ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by stockholders’ equity, indicating the level of debt used to finance assets.