The Financial Ratio That Indicates the Degree to Which the Organization

question 101

Multiple Choice

The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the _____________ ratio.

• A) leverage
• B) liquidity
• C) activity
• D) profit
• E) inventory turnover

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Definitions:

Stabilization

The process of making a compound, mixture, or structure more stable or resistant to change, often through chemical reactions or physical processes.

Most Acidic

Describes the substance with the highest acidity in a given context, typically having the lowest pH or greatest ability to donate a proton (H+ ion).

Proton

A subatomic particle found in the nucleus of an atom, possessing a positive electrical charge.

Methanesulfonic Acid

A strong organic sulfonic acid with the molecular formula CH3SO3H, used in various chemical synthesis processes.