Read the English Dial (The Arrow near the Zero Indicates

question 123

Multiple Choice

Read the English dial (the arrow near the zero indicates the initial deflection of the needle) .

• A) -3.06 in.
• B) 0.394 in.
• C) 3.06 in.
• D) -0.306 in.
• E) 0.306 in.

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Definitions:

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term debts with its current assets.

Current Ratio

Current assets/current liabilities. Measures the ability of the firm to pay off its current liabilities by liquidating current assets.

Acid Test

A stringent test that measures the liquidity of a company by calculating its quick assets (excluding inventory) against its current liabilities.

ROA

Return on Assets represents a financial metric that measures a company's profitability in relation to its overall assets.