Activity Ratios Are Ratios with Some Measure of Profit in the Numerator

question 32

True/False

Activity ratios are ratios with some measure of profit in the numerator and some measure of firm size or assets in the denominator.

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Definitions:

P(A Or B)

The probability that at least one of two events, A or B, will occur.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of the other.

P(A And B)

The probability of both event A and event B occurring together.