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

question 12

Multiple Choice

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

Solve

The process of finding the values that satisfy an equation or inequality.

Conditional Equation

An equation that is true for certain values of its variables, often used in algebra to describe a relationship subject to specific conditions.

Identity Equation

An equation that is true for all values of the variable, typically used to express fundamental algebraic properties.

Solve

The process of finding an answer or solution, especially in mathematics by determining the value of variables.