Indicate the Type of Each Ratio Listed Below

question 71

Multiple Choice

Indicate the type of each ratio listed below.
-Times interest earned ratio

• A)liquidity ratio
• B)solvency ratio
• C)profitability ratio

---

Definitions:

Note Receivable

A financial asset representing a promise to receive a specific amount of money, plus interest, from another party within a defined time frame.

Return

In finance, it refers to the profit or loss made on an investment over a specified period, expressed as a percentage of the initial investment.

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stockholders, calculated as total assets minus total liabilities minus preferred stock equity.

Inventory Turnover

Inventory turnover is a measure of how frequently a company sells and replaces its stock of goods within a certain period, indicating the efficiency of inventory management.