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

question 105

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.
-Finally, as the hour dragged to midnight, Jana finished calculating the ________ ratio, because Dania wanted to know how efficiently and effectively management is using its assets to generate profits.

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

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