Anna Has Just Reviewed a Number of Indicators of Financial

question 63

Multiple Choice

Anna has just reviewed a number of indicators of financial control for her firm.One that worries her indicates that the company may soon have trouble making loan payments and clearing its current accounts receivables.In this case,Anna is concerned about the ________ ratio.

• A)profit and loss
• B)profitability
• C)leverage
• D)net working capital
• E)return on investment

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Definitions:

Fixed Incomes

Types of investment securities that pay investors fixed interest or dividend payments until their maturity date.

Business Cycle

The cyclical pattern of economic growth characterized by phases of expansion, peak, downturn, and recovery, which naturally progresses over time.

Recovery Phase

A period in the economic cycle where economic activity starts to increase again after a recession, leading to growth in GDP and employment.

Prosperity

A state of economic well-being and flourishing, characterized by financial success and material wealth.