Match the Following Types of Ratios with Their Definitions

question 4

Multiple Choice

Match the following types of ratios with their definitions.
-__ Profitability

• A) assess whether an organization is maintaining an adequate level of cash or near-cash assets.
• B) assess how well an organization did financially.
• C) compares numbers on the balance sheet to total assets and numbers on operating statement to revenues.
• D) assess the organization's ability to meet its financial debt obligations (principal and interest).
• E) assess how well an organization manages its activities.

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Definitions:

Stare Decisis

A legal principle that mandates courts to follow the rulings of previous cases in similar circumstances.

Equity

A branch of law that deals with justice and fairness, often providing remedies and relief that are not available under standard legal procedures.

Equitable Principles

Legal rules intending to enforce fairness and justice, often applied in situations where traditional laws might produce an inequitable outcome.

Money Damages

Compensation awarded to a plaintiff to recover losses suffered as a result of the defendant's wrongful actions.