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

question 167

Multiple Choice

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

Management

The process of dealing with or controlling things or people, often within an organization.

Ethical Responsibility

The duty to act in a morally right way, considering the impact of one's actions on others and society.

Leaders and Followers

The dynamic relationship between those who guide or direct actions and decision-making in a group (leaders) and those who accept this guidance and direction (followers).

Leadership Equation

A conceptual formula that attempts to quantify or summarize the key factors or elements that make effective leadership.