In Ratio Analysis, the Ratios Are Never Expressed as a

question 14

Multiple Choice

In ratio analysis, the ratios are never expressed as a

• A) rate.
• B) logarithm.
• C) percentage.
• D) simple proportion.

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Definitions:

Indirect Method

A financial reporting approach used primarily for cash flow statements that adjusts net income for changes in non-cash accounts to calculate cash flow from operating activities.

Cash Dividends

Payments made by a company to its shareholders out of its profits or reserves.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, indicating financial health and liquidity.