D076 UNIT 4 (36
questions fully
solved )
liquidity ratio - answer is a measure of not only
how much cash you have but also how easily you
can convert short-term assets into cash.
activity ratio - answer the firm's operational
efficiency and profitability.
activity ratio - answer efficiency ratio
leverage ratio - answer financing ratios or solvency
ratios
leverage ratio - answer how the firm is financed.
profitability ratio - answer based on either sales or
asset investment
, market ratios - answer used to evaluate the
current share price of a public firm's stock.
liquidity ratio - answer What type of ratio is used
to assess a firm's ability to meet short-term
obligations without raising external capital?
Because different types of ratios are needed to get
information about different parts of a firm - answer
Why are several different types of ratios used to
analyze a firm?
What proportions of equity and debt a firm uses to
finance its assets - answer What do leverage ratios
describe?
liquidity ratio - answer Which type of ratio is a
current ratio?
The current ratio includes inventory in current
assets, and the quick ratio does not. - answer What
is the main difference between the current ratio
and the quick ratio?
This firm is expected to grow in the future. -
answer The firm Betsy's Books has a market-to-
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