Leverage ratios measure
A) extent to which the firm uses debt financing
B) the speed with which the firm sells inventory
C) sales relative to some base such as equity
D) capacity of the firm to meet current obligations
Correct Answer:
Verified
Q40: Leverage ratios indicate the extent to which
Q41: Operating income does not consider
A) depreciation
B) cost
Q42: Equity includes
A) cash
B) investments
C) retained earnings
D) assets
Q43: When an asset is depreciated,
A) its cost
Q44: The current ratio excludes
A) accrued interest
B) inventory
C)
Q46: Current liabilities do not include
A) short‑term bank
Q47: An increase in the days sales outstanding
Q48: A high current ratio suggests that the
Q49: No matter which method of depreciation is
Q50: The use of accelerated depreciation
A) initially increases
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