When conducting the financial statement analysis, which of the following statement is true? Select one:...

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Accounting

When conducting the financial statement analysis, which of the following statement is true?

Select one:

a.

Banks prefer to lend to borrowers with higher Debt/Equity ratios.

b.

High level of current ratios is definitely a good signal of a borrower.

c.

Average collection period measures the borrowers efficiency in collecting its receivables, and it should be higher than borrowers credit terms for its customers.

d.

Its safer for banks to lend to borrowers with high ROA.

e.

None of the given

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