Question

__________ are used to determine how well a company is managing its assets. Select one: a....

__________ are used to determine how well a company is managing its assets.

Select one:

a. Activity ratios

b. Leverage ratios

c. Liquidity ratios

d. Market ratios

e. Probability ratios

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Homework Answers

Answer #2

Answer: a. Activity ratios

Explanation:

Activity ratios:

  • are used to determine how well a company is managing its assets

Leverage ratios:

  • are used to determine how much of a company's net worth and asset commitment is being financed with debt

Liquidity ratios:

  • are used to determine the ability to meet short term obligations

Market ratios:

  • are used to determine at what price investors are willing to pay for the ownership

Profitability ratios:

  • are used to determine how well the firm is using its assets and sales revenue to generate a positive return

Thus, Option a is correct.

answered by: anonymous
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