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

question 51

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-Return on common stockholders' equity

• 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:

Business Users

Individuals within an organization who utilize information technology and systems in the course of their job to enhance productivity or decision-making.

Manufacturing Module

A component of enterprise resource planning (ERP) systems designed to manage and automate various aspects of the manufacturing process.

Payroll

The total amount of wages paid by a company to its employees and contractors.

JAD

Joint Application Development, a methodology that involves the client or end user in the design and development of an application through collaborative workshops.