Of the Following Statements About Financial Ratios, Which Is NOT

question 29

Multiple Choice

Of the following statements about financial ratios, which is NOT true?

• A) Financial ratios are designed to assess different aspects of the firm's financial situation.
• B) Financial ratios enable meaningful comparisons among companies of different sizes to assess which companies are performing better and which are performing worse.
• C) The Debt Ratio = Total Liabilities/Current Assets
• D) A rule of thumb is that companies should have a current ratio between 1 and 2.
• E) The current ratio is often important in debt covenants.

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A slippery secretion produced by mucous membranes and glands for protection and lubrication in various parts of the body.

Bronchioles

The smallest air passages in the lungs, extending from the bronchi and leading to the alveolar sacs.

Cartilage

A flexible and semi-rigid supportive connective tissue found throughout the body, including the joints, ear, nose, and trachea, providing structure and allowing for movement.

Lung Cancer

A type of cancer that begins in the lungs, often associated with smoking and exposure to harmful substances.