CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Which of the following would not be regarded as one of the key ratios that would be used to analyze a firm's ability to pay its debts?

A. interest coverage ratios
B. equity turnover ratio
C. current ratio
Correct Answer: B

Equity turnover is defined as sales over average shareholder's equity. While this ratio is important in any analysis involving a firm, it wouldn't be regarded as a priority in conducting a credit or liquidity analysis.

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