How Many of These Ratios Measure the Adequacy of Profits

question 43

Multiple Choice

How many of these ratios measure the adequacy of profits?
.Profit before interest and finance costs/ finance costs
.Profit compared to total assets
.Profit compared to sales
.Profit compared to equity

• A)1
• B)2
• C)3
• D)4

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Definitions:

Debt Forgiveness

The cancellation or reduction of the principal amount owed on debt by a creditor, reducing the financial burden on the debtor.

Low-Income DVCs

Developing or underdeveloped countries with low levels of average income per capita, often facing significant economic and social challenges.

G8 Nations

A group of eight major industrialized countries that meet periodically to address global economic issues; originally included Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States.

Debt Cancellation

The action of forgiving or eliminating all or part of a debt, making the borrower free from repaying the amount owed.