Which One of the Following Sets of Ratios Would Generally

question 68

Multiple Choice

Which one of the following sets of ratios would generally be of the most interest to stockholders?

• A)Return on assets and profit margin
• B)Quick ratio and times interest earned
• C)Price-earnings ratio and debt-equity ratio
• D)Return on equity and price-earnings ratio
• E)Cash coverage ratio and equity multiplier

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Definitions:

Cumulative Unrecognized

Accumulated amounts of certain expenses or revenues that have not yet been recognized in a company's financial statements.

Amortization

The process of gradually writing off the initial cost of an asset over a period, often used for intangible assets.

Corridor

A method used in pension accounting to amortize certain actuarial gains and losses over time.

Unrecognized Loss

A loss that has occurred but has not yet been reported in the financial statements because it has not been realized through a transaction.