What Is Critical Thinking

question 48

Multiple Choice

What is critical thinking?

• A) Questioning what you read and not necessarily agreeing with it
• B) Using a theory based on your own view
• C) Looking for reasons for accepting something as being correct or true
• D) Criticising the arguments of others and putting your own forward

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Definitions:

Ratio

The expression of a financial statement item or set of items as a percentage of another financial statement item in order to measure an important economic relationship as a single number.

Solvency

The ability of an entity to meet its long-term financial commitments and debts as they come due.

Liquidity

A measure of how quickly and easily an asset can be converted into cash without significantly affecting its price.

Profitability

A measure of the efficiency and success of a business in generating profits from its operations over a period of time.