25. An acceleration in the collection of receivables will send to cause the accounts receivable turnover to A. Increase B. Decrease C. Remain the same D. Either increase or decrease 26. Which of the following ratios provides a measure that shows the margin of safety of bondholders and also gives an indication of the potential ability of a business to borrow additional funds on a long-term basis? A Asset turnover ratio. B. Number of days' sales in receivable. C. Return on stockholders' equity D. Ratio of fixed assets to long-term liabilities. 27. Which of the following is a profitability analysis? A Rate earned on total assets B Rate earned on stockholders' equity C. Rate eamed on common stockholders' equity. D. All of the above. 28. When interpreting financial ratios, it is useful to compare a company's ratios to the same ratios from a prior period or to the ratio of another company in the same industry. A True B. False 29. Corporate annual reports typically contain A Management discussion and analysis B Report on internal control C Report on fairness of the financial statements D. All of the above 30. The purpose of an audit is to 4. Determine whether or not a company is a good investment. B. Determine whether or not a company is a good credit risk. C. Render an opinion on the fairness of the financial statements. D. None of the above