The Ratio Scale of Measurement Has the Properties of

question 2

Multiple Choice

The ratio scale of measurement has the properties of

• A)only the ordinal scale
• B)only the nominal scale
• C)the rank scale
• D)the interval scale

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Definitions:

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring the efficiency of asset use.

Leverages

The use of borrowed money (debt) in addition to equity in the investment to finance the purchase of assets and increase the potential return on investment.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activity by operating, investing, and financing activities.

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventories.