Which of the Following Would, Generally, Indicate an Improvement in a Company's

question 103

Multiple Choice

Which of the following would, generally, indicate an improvement in a company's financial position, holding other things constant?

• A) The total assets turnover decreases.
• B) The TIE declines.
• C) The DSO increases.
• D) The EBITDA coverage ratio increases.
• E) The current and quick ratios both decline.

---

Definitions:

Decreased

Refers to being reduced in size, quantity, degree, or intensity.

Torrance Test

A series of standardized tests designed to measure creative thinking ability in individuals.

Creative Thinking

The ability to think outside the box and generate new, original, and innovative ideas or solutions.

Associative Elements

Components or factors that are linked through association in psychological processes, such as in learning and memory.