The Following Ratio(s) That Would Probably Not Be Used to Assess

question 97

Multiple Choice

The following ratio(s) that would probably not be used to assess the profitability of a firm is:

• A)return on stockholders' equity
• B)return on total assets
• C)times interest earned
• D)both return on stockholders' equity and return on total assets

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Definitions:

Working Capital Management

The managing of short-term assets and liabilities.

Current Assets

Assets that are used or converted into cash within the course of a calendar year.

Financial Managers

Those who focus on obtaining needed funds for the successful operation of an organization and using those funds to further organizational goals.