Financial Ratios (Scenario) Jan Was in a Big Hurry. She Had Just Been

question 75

Multiple Choice

Financial Ratios (Scenario)
Jan was in a big hurry. She had just been given the assignment of reporting on the financial health of her company to the new divisional vice-president, Donna. Donna had asked Jan to provide several calculations to help her gain an understanding of the company's financial shape. Jan realized that this was a great career opportunity—one that could make or break her reputation with the new vice-president. She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to review the required calculations.
-Donna was also interested in predicting the company's ability to meet short-term obligations,which meant that Jan had to calculate a(n) ________ ratio.

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