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

question 192

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-quick ratio

• 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

---

Definitions:

Percentages

Numerical values expressed as fractions of 100, used to describe proportions or ratios.

Dangling Modifiers

A word or phrase that modifies a word not clearly stated in the sentence, often leading to confusing or unintended meanings.

Grin

A broad smile indicating amusement, happiness, or satisfaction.

Standards

Established norms, criteria, or requirements that specify the expected levels of quality or performance.