Financial Ratios (Scenario) Jana Was in a Big Hurry. She Had Just Been

question 47

Multiple Choice

Financial Ratios (Scenario)
Jana was in a big hurry. She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president. Dania, the new vice president, had asked Jana to work up several calculations to help her gain an understanding of the company's financial shape. Jana was working hard and had a big order to fill, one that could make or break her reputation with Dania. She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions that were asked.
-Dania also asked Jana to give her an idea of the organization's ability to meet the interest payments on its debt. Therefore, Jana looked to the section on ________ ratios.

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