Suzanne Has Recently Reviewed a Number of Indicators of Financial

question 58

Multiple Choice

Suzanne has recently reviewed a number of indicators of financial control. The one that troubled her, the ________, indicated that the company could have trouble meeting its short-term financial obligations.

• A) profit and loss statement
• B) profitability ratio
• C) leverage ratio
• D) current ratio
• E) return on investment

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Definitions:

Prime Rate

The interest rate that commercial banks charge their best customers (usually large corporations) for short-term loans.