Which of the Following Ratios Is Most Useful in Evaluating

question 136

Multiple Choice

Which of the following ratios is most useful in evaluating liquidity?

• A)Return on assets.
• B)Return on equity.
• C)Debt to equity ratio.
• D)Current ratio.

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Definitions:

Apples

Edible fruits from the apple tree, used in various cuisines and known for their health benefits.

Utility Function

A mathematical representation in economics that describes how different goods or bundles of goods satisfy a consumer's needs and preferences.

Budget Constraint

An economic model representing all the combinations of goods and services a consumer can afford, given their income and the prices of goods.

Income

The financial gain or money received by an individual or household from various sources like work, investments, or transfers, over a period of time.