Match Each Ratio That Follows to Its Use (Items A-H)

question 72

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-working capital

• A)assess the profitability of the assets
• B)assess how effectively assets are used
• C)indicate the ability to pay current liabilities
• D)indicate how much of the company is financed by debt and equity
• E)indicate instant debt-paying ability
• F)assess the profitability of the investment by common stockholders
• G)indicate future earnings prospects
• H)indicate the extent to which earnings are being distributed to common stockholders

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Definitions:

Mechanization of Agriculture

The process of using agricultural machinery to automate the work on farms, increasing productivity and efficiency in food production.

New Economy

Refers to economies based on digital, telecommunications, and information technology innovations that fuel economic growth and productivity.

Technological Change

The innovation or adoption of new or improved technologies, which can enhance productivity, efficiency, and quality of life.

Low Unemployment

A situation where a very small percentage of the labor force is not engaged in gainful employment, indicating a healthy economy.