Explain the Following Types of Ratios

question 100

Essay

Explain the following types of ratios:
a.Liquidity
b.Asset management
c.Debt management
d.Profitability

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Definitions:

Comparative Income Statement

A financial statement that presents the revenues, expenses, and profits of a company over different periods to highlight changes over time.

Sales

The total amount of goods or services sold by a company, contributing to its revenue.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income or loss over a specific period.