Multiple Choice
Which of the following statements is most correct?
A) Larger values of the equity multiplier imply a greater use of leverage by the firm.
B) The receivables turnover is computed by dividing year-end accounts payable by the year-end accounts receivables.
C) The operating return on assets is computed as the earnings after interest and taxes divided by total assets.
D) The quick ratio is computed by dividing current liabilities by owners' equity.
Correct Answer:
Verified
Correct Answer:
Verified
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