Match Each Ratio That Follows to Its Use Items A-H

question 152

Multiple Choice

Match each ratio that follows to its use items a-h.Items may be used more than once.
-rate earned on total assets

• A)assess the profitability of the assets
• B)assess the effectiveness in the use of assets
• C)indicate the ability to meet currently maturing obligations
• D)indicate the margin of safety to creditors
• E)indicate instant debt-paying ability
• F)assess the profitability of the investment by common stockholders
• G)indicate future earnings prospects
• H)indicate the extent to which earnings are being distributed to common stockholders

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