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- Multiple ChoicePlease save your changes before editing any questions.Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.liquidity ratiosefficiency ratiosleverage ratiosprofitability ratios
- Multiple ChoicePlease save your changes before editing any questions.
Financial ratios that tell how much of each rand of sales, assets, and owner's equity resulted in net profit.
liquidity ratios
efficiency ratios
profitability ratios
leverage ratios
- Multiple ChoicePlease save your changes before editing any questions.The difference between current assets and current liabilities at a point in time. The amount of money that would be left over if all the current liabilities were paid off by current assets.current ratioworking capitalacid test/ quick ratioasset turnover ratio
- Multiple ChoicePlease save your changes before editing any questions.
The comparison of a firm's current assets to current liabilities. The ratio indicates the amount of current assets available to pay off R1 of current debt.
acid test/ quick ratio
asset turnover ratio
current ratio
inventory turnover
- Multiple ChoicePlease save your changes before editing any questions.Indicates a firm's ability to quickly liquidate assets to pay off current debts.asset turnover ratioinventory turnoverdebt-to-assets ratioacid test/ quick ratio
- Multiple ChoicePlease save your changes before editing any questions.The amount of profit generated by the firm in relation to the amount invested by the owners.return on investmentratioworking capitalinventory turnover
- Multiple ChoicePlease save your changes before editing any questions.The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:Balance SheetStatement of Retained EarningsStatement of Cash FlowsIncome Statement
- Multiple ChoicePlease save your changes before editing any questions.If total expenses exceed total revenue, a net loss is reportedTrueFalse
- Multiple ChoicePlease save your changes before editing any questions.
Examples may include salaries, utilities, rent, insurance, and office supplies.
Revenue
Expenses
Net Income
Net Loss
- Multiple ChoicePlease save your changes before editing any questions.This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to.Income StatementBalance Sheet