Which of the Following Statements About Financial Statements Is Incorrect

question 86

Multiple Choice

Which of the following statements about financial statements is incorrect?

• A) The net margin ratio is a profitability ratio.
• B) The current ratio is a liquidity ratio.
• C) The debt to assets ratio is a liquidity ratio.
• D) The dividend yield is a stock market ratio.

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Definitions:

Test Evidence

Demonstrable data or documents that support the validity or reliability of a specific hypothesis, theory, or assessment tool.

Optimality Theory

A principle suggesting that organisms behave in ways that maximize their fitness, balancing the costs and benefits of each action.

Flight Expenses

The energy cost associated with flying, which includes the metabolic rate required for maintaining powered flight.

V-Formation

A flight formation often seen in birds, especially migratory species, where individuals position themselves in a V shape to conserve energy and improve aerodynamics.