Juanita has the following three ratios: (1) debt service coverage = 2.5, (2) debt ratio = 0.5, and (3) liquidity ratio = 0.8. We can say that Juanita has
A)
poor solvency and poor liquidity.
B)
strong solvency and strong liquidity.
C)
strong liquidity but poor solvency.
D)
strong solvency but poor liquidity.
D
You might also like to view...
What is true of how the National Labor Relations Board (NLRB) carries out the function of preventing unfair labor practices?
A. If an employer or union refuses to comply with an NLRB order, the board has the authority to petition the U.S. Court of Appeals. B. The deadline for filing a charge is twelve months after the alleged unfair practice. C. The NLRB is not authorized to set aside the results of an election and must approach the courts for this purpose. D. The NLRB has no authority to issue cease-and-desist orders to halt unfair labor. E. The board can order the employer to reinstate workers but cannot order them to pay back pay.
Why is fraud detection an important part of the audit?
a. Auditors are required to seek out and find all fraud, regardless of its magnitude. b. Auditors expect that management will make them aware of any fraud in the financial statements. c. Society expects that financial statements have not been materially misstated due to fraud. d. Society realizes that some fraud was not intended to be discovered by auditors.
If a research report will be used across different countries and languages only one report should be prepared
Indicate whether the statement is true or false
Segment profitability analysis includes the preparation of a segmented income statement
Indicate whether the statement is true or false