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Author Question: Which of the following is an accurate statement regarding a company's ability to meet its long-term ... (Read 110 times)

ega16

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on: Aug 21, 2022

Question 1

Which financial ratio is computed by dividing current assets by current liabilities?
◦ quick ratio
◦ debt to equity
◦ accounts receivable turnover
◦ current ratio

Question 2

Which of the following is an accurate statement regarding a company's ability to meet its long-term debt obligations?
◦ If the debt-to-equity ratio is too high, it may indicate that the company has used up its borrowing capacity.
◦ If the debt-to-equity ratio is too high, it may mean that available leverage is not being used to the owners' benefit.
◦ The times interest earned ratio indicates if a company can make its principal and interest payments.
◦ The key ratios that are used to measure a long-term solvency are debt to equity, return on assets, and times interest earned.
Auditing and Assurance Services ¦ Arens, Elder, Beasley, Hogan ¦ 17th Edition
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Marked as best answer by ega16 on Aug 21, 2022

wangyichun

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Reply #1 on: Aug 21, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ega16

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Reply 2 on: Aug 21, 2022
Excellent

sailorcrescent

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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