The Conversion Ratio Is Considered to Be A(n) __________ Ratio

question 6

Multiple Choice

The conversion ratio is considered to be a(n) __________ ratio.

• A) activity
• B) liquidity
• C) profitability
• D) leverage
• E) cash

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Definitions:

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or abandoned and are reported separately in financial statements.

Unusual Item

A significant financial transaction or event that is rare and not expected to recur frequently, reported separately in financial statements to not distort the operational performance.

Fixed Assets

Durable physical assets employed in the running of a company, which are not anticipated to be expended or turned into cash within one fiscal year.

Disposal Of A Segment

This refers to the selling, discontinuing, or otherwise getting rid of a portion of a company's operations or divisions.