Which of the following ratios is difficult for the creditors of a firm to analyze from the published financial statements?
A) debt equity ratio
B) average payment period
C) quick ratio
D) total asset turnover

Question

Quizplus · Accepted Answer

The average payment period is difficult for creditors to analyze from published financial statements because it requires information about the payment patterns of the firm's customers, which is not typically provided in financial statements. The other three ratios (debt equity ratio, quick ratio, total asset turnover) can be calculated directly from information in the financial statements.

Which of the Following Ratios Is Difficult for the Creditors