The lower the debt ratio:
A) the harder it is for the business to borrow funds to carry it through a short-term cash shortage
B) the easier it is for the business to borrow funds to carry it through a short-term cash shortage
C) the more financially stable the business is
D) the higher its interest payments are likely to be
Correct Answer:
Verified
Q7: If both gross profit margin and net
Q8: A price/earnings ratio above the industry average
Q9: Choose the correct definition for solvency.
A)The ability
Q10: If a firm drops its price to
Q11: Choose the correct definition for liquidity.
A)The ability
Q13: Choose the correct statement: the debt ratio:
A)shows
Q14: If accounts receivable (debtors)turnover is speeding up,which
Q15: The solvency test:
A)is a requirement for companies
Q16: Choose the correct explanation for the current
Q17: Choose the correct definition for financial stability.
A)The
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