Which of the Following Are the Four Basic Categories of Financial

question 2

Multiple Choice

Which of the following are the four basic categories of financial ratios?

• A) current, turnover, asset, and earnings ratios
• B) liquidity, stability, ROI, and payback ratios
• C) current, inventory, equity, and debt ratios
• D) liquidity, leverage, ROI, and debt ratios

---

Definitions:

Employee Benefits

Non-wage compensations provided to employees in addition to their regular salaries or wages, such as health insurance, retirement plans, and paid time off.

Costs of Turnover

Expenses associated with an employee leaving a company, including recruitment, training, and lost productivity costs.

Medical Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, offering protection against high healthcare costs.

Vesting Rights

Guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer.