Which of the Following Discoveries Through the Use of Analytical

question 88

Multiple Choice

Which of the following discoveries through the use of analytical procedures would most likely indicate a relatively high risk of financial failure?

• A)A decline in gross margin percentages
• B)An increase in the balance in fixed assets
• C)An increase in the ratio of allowance for uncollectible accounts to gross accounts receivable, while at the same time accounts receivable turnover also decreased
• D)A higher than normal ratio of long-term debt to net worth as well as a lower than average ratio of profits to total assets