Catherine Has Recently Reviewed a Number of Indicators of Financial

question 40

Multiple Choice

Catherine has recently reviewed a number of indicators of financial control. The one 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

---

Definitions:

Activation Energy

The minimum amount of energy required to initiate a chemical reaction.

Endergonic

A chemical reaction in which the standard change in free energy is positive, and energy is absorbed from the surroundings.

Exergonic

Describes a reaction that ends with a net release of free energy.

Oxidized

A chemical process where a molecule, atom, or ion loses electrons, often leading to its reaction with oxygen.