________________ Ratios Measure the Ability of a Firm to Earn

question 42

Multiple Choice

________________ ratios measure the ability of a firm to earn an adequate return on sales, total assets, and invested capital.

• A)Asset-utilization
• B)Liquidity
• C)Profitability
• D)Debt-utilization
• E)Price

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Definitions:

Express Warranty

Any description of a good’s physical nature or its use, either in general or specific circumstances, that becomes part of a contract.

Puffing

refers to exaggerated or hyperbolic comments about a product or service that are subjective opinions, not intended to be taken as facts or guarantees.

Express Warranty

An express warranty is a seller's promise or guarantee about the quality or functionality of a product, explicitly stated in the contract or marketing materials.

Physical Nature

Pertains to the material aspects or characteristics of something, focusing on its tangible properties.