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

question 22

Multiple Choice

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

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Definitions:

Meta-

A prefix indicating change, transformation, or a higher level of abstraction in various scientific and philosophical fields.

Scanty

Insufficient in amount, quantity, or extent; meager or limited.

Double

Consisting of two equal, identical, or similar parts or things; increased or twice as much in size, quantity, or extent.

Meso-

A prefix in biology and chemistry, meaning middle or intermediate.