In 2012,C Co

question 93

Multiple Choice

In 2012,C Co.reported a quality of earnings ratio of 1.60.In 2011 and 2010 the ratio was .97 and .98 respectively.Which of the following was the most likely cause of the large increase in the ratio?

• A)An increase in current assets such as receivables and inventory.
• B)An increase in trade payables and accrued liabilities.
• C)An increase in sales revenue while profit remained the same.
• D)None of these is a likely cause.

---

Definitions:

Actuator

A device that produces mechanical motion in response to an electrical, air, or hydraulic signal.

Pilot Operated

A system or valve controlled indirectly through the use of a smaller, pilot valve rather than directly by mechanical means.

Flow Control

The regulation and management of the rate or volume of flow in a system, such as fluids in pipelines or data over networks, to meet certain conditions or requirements.

Directional Control

The mechanism or system used to steer or change the direction of a vehicle or a machine part.