M: Business 3rd Edition by O. C. Ferrell, Geoffrey Hirt, Linda Ferrell

Exercise 66

Morgan was asked to extend trade credit to a restaurant she hadn’t serviced before. She asked to see its balance sheet to determine if it could pay its bills. She divided its current assets by current liabilities to get its

A. current ratio.

B. receivable turnover.

C. inventory turnover.

D. earnings per share.

E. book value per share.