Which of the Following Statements Is True

question 88

Multiple Choice

Which of the following statements is true?

• A)The inventory turnover ratio is an important solvency test for retail companies.
• B)Liquidity focuses on the ability of a company to pay their long- and short-term debts.
• C)Tests of profitability focus on measuring the adequacy of profit.
• D)The debt to equity ratio is a measure of liquidity.

---

Definitions:

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Manipulation

The skillful or artful management or control of something or someone, often in a manner that is somewhat deceptive or underhanded.

Control Group

In experimental research, it refers to the group of participants who do not receive the experimental treatment, offering a baseline comparison for the effects of that treatment.

Workers' Compensation

An insurance type offering both medical benefits and wage replacement to workers who get injured while performing their job duties.