Which of the Following Is the Best Indicator of Management's

question 21

Multiple Choice

Which of the following is the best indicator of management's effectiveness at managing the firm's balance sheet?

• A) Debt ratio
• B) Total asset turnover
• C) Times-interest-earned
• D) Operating profit margin

---

Definitions:

Categorical Approach

A method of classification that involves organizing items, concepts, or phenomena into distinct groups or categories based on shared characteristics.

Psychological Disorders

Psychological disorders are patterns of behavioral, cognitive, or emotional symptoms that significantly impact multiple areas of life, often characterized by distress and impairment in functioning.

Maladaptive Behaviour

Actions or tendencies that are counterproductive to oneself or hinder personal adjustment and well-being.

Personal Distress

A form of emotional discomfort or pain stemming from witnessing or learning about another’s suffering.