Financial Ratios That Reflect the Degree to Which a Firm

question 28

Multiple Choice

Financial ratios that reflect the degree to which a firm relies on borrowed funds are called ________ ratios.

• A) leverage
• B) liquidity
• C) activity
• D) profitability

---

Definitions:

Mineralocorticoids

A class of steroid hormones that regulate electrolyte and water balance by acting on the kidneys, primarily aldosterone.

PTH

Parathyroid hormone, a regulator of calcium levels in the blood.

Insulin

A substance secreted by the pancreas that controls blood sugar levels by assisting the absorption of glucose by cells.

ADH

Antidiuretic Hormone, also known as vasopressin, a hormone produced by the pituitary gland that regulates the body's retention of water by increasing the concentration of the urine.