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

question 192

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-quick ratio

• A)assess the profitability of the assets
• B)assess how effectively assets are used
• C)indicate the ability to pay current liabilities
• D)indicate how much of the company is financed by debt and equity
• 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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Definitions:

Credit Sales

Credit sales are transactions where the customer purchases goods or services with an agreement to pay at a later date.

Cash Budget

A cash budget is a financial plan that estimates cash inflows and outflows over a specific period of time.

Housekeeping Budget

A financial plan allocating funds to maintain cleanliness, equipment, and supplies for housekeeping operations within an organization.

Occupied Rooms

In the context of hotel management, the number of rooms that are currently being used by guests.