Examlex
Rationality is based on which of the following?
Solvency
The ability of a company to meet its long-term financial commitments and continue operations in the long-term, often assessed through ratios comparing assets to liabilities.
Profitability
measures how much profit or financial gain is generated as a percentage of the revenue of a company or business segment.
Liquidity
The simplicity of transforming an asset into cash without influencing its market value.
Statement of Cash Flows
A financial report that shows how changes in the balance sheet and income affect cash and cash equivalents, and breaks down financing, investing, and operating activities.
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