Which of the Following Financial Ratios Is the Best Measure

question 93

Multiple Choice

Which of the following financial ratios is the best measure of how effectively a firm's management is serving its stockholders?

• A) Current ratio
• B) Debt ratio
• C) ACP
• D) Return on equity

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Definitions:

Financing Statement

A document filed to give public notice typically of a secured transaction involving personal property, which helps establish the priority of the filer's interest in the property.

Collateral

Assets pledged by a borrower to secure a loan or guarantee repayment, which can be seized in case of default.

Creditor's Name

The name of an individual or entity to whom money is owed or who has provided credit to another party.

Debtor's Name

The legal name of an individual or entity that owes money to a creditor or lender.