試題詳解

Financial Controls
Ruth Moody works as a freelance financial consultant. She renders financial services to individuals and small businesses. Entropic Communications, Inc., a fabless semiconductor company, seeks her services to study the financial stability of their company.

29. Ruth identifies the firm's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?
(A) Pay back part of its debts to improve the ratio.
(B) Reduce the sales to total assets ratio of the firm.
(C) Increase the money supply by selling a part of its assets.
(D) Maintain more current assets than current liabilities.