Which of the Following Would Be Generally Viewed as a Negative

question 156

Multiple Choice

Which of the following would be generally viewed as a negative change?

• A)Earnings per share increases.
• B)The debt-to-total assets ratio decreases.
• C)The acid test ratio increases.
• D)The return on common equity decreases.

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Definitions:

Finished Goods

These are completed products that are ready for sale but have not yet been sold to customers.

Cost of Goods Sold

Costs directly incurred in the manufacture of goods a company sells.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxes, and interest expenses.