Whenever the Numerator and Denominator Are Equal, the Value of the Fraction

question 70

Multiple Choice

Whenever the numerator and denominator are equal, the value of the fraction is equal to

• A) 1
• B) 2
• C) 4
• D) 10

Recognize the impact of share transactions and asset sales on a company's financial ratios.

Understand liquidity and solvency ratios, particularly the current ratio and acid-test (quick) ratio.

Identify sources of financial leverage and their role in corporate finance.

Assess the implications of certain financial decisions on working capital, book value per share, and market ratios.

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Definitions:

End

The conclusion or final point of something, where it ceases to continue.

Recognition

The ability to match a piece of information or a stimulus to a stored image or fact.

Recall

The act of retrieving information or facts from one's memory without having the information present for reference, differing in context as a duplicated term but synonymous with retrieving learned information.

Priming

The process by which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.