Which of the Following Transactions Decreases the Earnings Quality Ratio

question 81

Multiple Choice

Which of the following transactions decreases the earnings quality ratio?

• A)The accrual of interest expense.
• B)Collecting cash on an account receivable.
• C)Selling inventory on account for a profit.
• D)Making a payment of principal on a loan.

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Definitions:

Positive Forces

Elements or factors that contribute to a favorable outcome or enhance a particular quality or situation.

Self-control

The capability to govern one's emotional states, thought patterns, and behaviors when facing allurements and instinctive reactions.

Online Dating

The practice of using websites or applications to find romantic partners over the internet.

Personality Matching

The process or practice of aligning individuals based on the compatibility of their personality traits for various purposes, such as relationships or job placements.