Multiple Choice
In 2013, C Co. reported a quality of earnings ratio of 1.60. In 2012 and 2011 the ratio was .97 and .98 respectively. Which of the following was the most likely cause of the large increase in the ratio?
A) An increase in trade payables and accrued liabilities.
B) An increase in current assets such as receivables and inventory.
C) An increase in sales revenue while net earnings remained the same.
D) A decrease in expense while net earnings remained the same.
Correct Answer:
Verified
Correct Answer:
Verified
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