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Which of the Following Indicates a Firm Will Be Able

Question 105

Multiple Choice

Which of the following indicates a firm will be able to pay its bills in a satisfactory manner?


A) A debt to equity ratio of 1:1 or higher
B) An activity ratio of 5:1 or less
C) A net income to common shares outstanding ratio of 1:1 or less
D) A current ratio of 2:1 or higher
E) A profitability ratio of 5:1 or higher

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