Stan Is Auditing First Financial Services and Would Like to Use

question 83

Essay

Stan is auditing First Financial Services and would like to use financial ratios to test the ability of First Financial Services to meet its current obligations.Name two ratios that would help Stan in this task.Indicate how each ratio is calculated and what a high ratio would signify to Stan.

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Definitions:

Going to Work

The act of performing duties or activities for employment or occupation, usually outside the home.

Managing Personal Finances

The practice of budgeting, saving, investing, spending, and overseeing the financial resources of an individual or family.

ADLs

Activities of Daily Living; routine activities people do every day without needing assistance, including eating, bathing, dressing, toileting, walking, and continence.

IADLs

Instrumental Activities of Daily Living; tasks required for independent living, such as managing finances, transportation, meal preparation, and housekeeping.