The Slope of a Line

question 43

Multiple Choice

The slope of a line

• A) can never equal zero.
• B) is always a constant.
• C) measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable.
• D) measures the value of the y-axis variable relative to the value of the x-axis variable.

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Definitions:

Debt-to-Assets Ratio

Debt-to-Assets Ratio is a financial ratio indicating the proportion of a company's assets that are financed through debt, used as a measure of financial leverage.

Quick-Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.

Common Size Income Statements

A financial statement in which all line items are expressed as a percentage of revenue, allowing for easy comparison across companies and time periods.

Revenues

The aggregate revenue from selling goods or providing services which constitute the core business activities.