Olivia Has Recently Reviewed a Number of Indicators of Financial

question 10

Multiple Choice

Olivia has recently reviewed a number of indicators of financial control. The ones that troubled her indicated that the company could have trouble meeting its short-term financial obligations. Which of the following was she concerned about?

• A) profit and loss statement
• B) profitability ratio
• C) leverage ratio
• D) current ratio
• E) return on investment

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Definitions:

Population mean

The average of a set of characteristics or values for the entire population.

Confidence interval estimate

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, given a specified level of confidence.

Standard deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values in a data set are.

Electric usage

The amount of electrical energy consumed by a residence, industry, or equipment in a specific period.