________ Ratios Tell Whether or Not the Small Company Will

question 31

Multiple Choice

________ ratios tell whether or not the small company will be able to meet its maturing obligations as they come due.

• A)Leverage
• B)Profitability
• C)Liquidity
• D)Operating

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Definitions:

Receiving Today

The concept of obtaining or expecting to obtain a certain amount or value in the present time.

Cash Flows

Refers to the net amount of cash and cash-equivalents being transferred into and out of a business.

Discounted Value

Discounted value is the present value of a future amount of money or stream of cash flows given a specified rate of return, reflecting the time value of money.

Present Value

The current worth of a future sum of money, given a specific rate of return or discount rate.