Ratios That Reflect Whether or Not a Firm Is Efficiently

question 10

Multiple Choice

Ratios that reflect whether or not a firm is efficiently using its resources are known as

• A)turnover ratios.
• B)leverage ratios.
• C)liquidity ratios.
• D)profitability ratios.

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Definitions:

Consolidate

In financial context, to combine assets, liabilities, and other financial items of two or more entities into one.

Consolidated Balance Sheet

A financial statement that aggregates all assets, liabilities, and equity of a parent company and its subsidiaries, presenting the financial position of the entire group.

Subsidiary

A company that is controlled by another company, referred to as the parent company.

Loaned

Refers to money or assets that have been lent to another party under an agreement to be repaid, often with interest.