When a Company Pays Its Bill from a Plumber for Previous

question 52

Multiple Choice

When a company pays its bill from a plumber for previous services on account:

• A)Its debt to equity ratio always decreases.
• B)Its acid-test ratio always remains unchanged.
• C)Its current ratio always remains unchanged.
• D)All of these are correct.

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Definitions:

Expected Return

The weighted average of all possible returns from an investment, accounting for the probability of each outcome.

Beta

An indicator of how much a stock's price fluctuates compared to the entire market, showing the level of risk associated with its returns.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values, commonly used in finance to assess the risk associated with a particular investment.

Correlation

Correlation is a statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.