Examlex
Which of these examples shows the most effective transition from the first sentence to the second?
Leverage Ratio
A financial metric indicating the level of debt relative to equity in a company's capital structure, used to assess the risk of investing in the company.
Acid-test Ratio
A financial metric used to evaluate a company's short-term liquidity, calculated by dividing liquid assets by current liabilities.
Financing Activities
Financial transactions that involve raising capital and repaying investors, such as issuing equity, securing loans, or paying dividends, which impact a company's cash flow.
Business Activities
Various processes and tasks undertaken by businesses, including operations, marketing, management, and financial transactions.
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