High debt to equity ratio


Which of the following is considered to be cash flow from operating activites?

  • cash paid to suppliers
  • cash paid for loan payments
  • cash paid for dividends
  • cash received from the sale of plant asset

Which of the following is not a reason for managers to use financial statements?

  • to assess how their company appears to creditors
  • to assess the ability of customers to meet their payment obligations
  • to see what their competitors' contribution margins are
  • to assess the long term viability of key customers

If a company has a current ratio of less than one, and a very high debt to equity ratio, managment might be reluctant to:

sign an agreement with this company to become a major supplier sell this company goods on credit expand capacity to better serve the needs of this company all of the above.

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Accounting Basics: High debt to equity ratio
Reference No:- TGS0692986

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