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Which of the following measures may be useful to decision makers evaluating the financial condition of...

Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university?

Multiple Choice

A. Number of graduates.

B. Composite financial index.

C. Faculty productivity.

D. Graduation rate.

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Answer #1

Answer:- The following measures may be useful to decision makers evaluating the financial condition of a college or university:-Composite financial index (Option B).

Explanation:- The composite financial index is a assessment of financial health used by the higher college or university. It mainly focuses on four core ratios to assess various important aspects of an organization financial condition. The ratios are as follows:-

  1. Primary reserve ratio
  2. Viability ratio
  3. Return on net assets ratio
  4. Net operating revenues ratio
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