Describe the Differences Between the Liquidity Ratios,solvency Ratios and Profitability

question 53

Essay

Describe the differences between the liquidity ratios,solvency ratios and profitability ratios.Identify examples of each type of ratio as well.

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Definitions:

Customers Served

The total number of customers who receive service or products from a business within a given time period.

Revenue

The total amount of income generated from the sale of goods or services before any expenses are subtracted.

Spending Variances

Differences between the actual spending and the budgeted or planned spending in a given period, often analyzed in cost and managerial accounting.

Customers Served

The number of clients or customers that have been provided with services or goods by a business within a certain timeframe.