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Which of the Following Are Considered in the Ratio Analysis

question 126

Multiple Choice

Which of the following are considered in the ratio analysis of a firm?
I. profitability
II. market share
III. liquidity
IV. leverage


Definitions:

Net Operating Income

A profitability measure calculated as the difference between a company's revenues from its operations and its operating expenses, excluding non-operating expenses and income.

Administrative Expenses

Costs related to the general management and administration of an organization, such as salaries of executive officers and costs of legal services.

Net Operating Income

The profit a company makes from its usual business operations, before taxes and interest, calculated by subtracting operating expenses from revenue.

Machine-Hours

A measure of production time used in cost accounting that quantifies the hours a machine is operated.

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