D076 UNIT 4 EXAMS
liquidity ratio - ✔✔is a measure of not only how much cash you have but also how easily you can
convert short-term assets into cash.
activity ratio - ✔✔the firm's operational efficiency and profitability.
activity ratio - ✔✔efficiency ratio
leverage ratio - ✔✔financing ratios or solvency ratios
leverage ratio - ✔✔how the firm is financed.
profitability ratio - ✔✔based on either sales or asset investment
market ratios - ✔✔used to evaluate the current share price of a public firm's stock.
liquidity ratio - ✔✔What type of ratio is used to assess a firm's ability to meet short-term obligations
without raising external capital?
Because different types of ratios are needed to get information about different parts of a firm - ✔✔
Why are several different types of ratios used to analyze a firm?
What proportions of equity and debt a firm uses to finance its assets - ✔✔What do leverage ratios
describe?
liquidity ratio - ✔✔Which type of ratio is a current ratio?
liquidity ratio - ✔✔is a measure of not only how much cash you have but also how easily you can
convert short-term assets into cash.
activity ratio - ✔✔the firm's operational efficiency and profitability.
activity ratio - ✔✔efficiency ratio
leverage ratio - ✔✔financing ratios or solvency ratios
leverage ratio - ✔✔how the firm is financed.
profitability ratio - ✔✔based on either sales or asset investment
market ratios - ✔✔used to evaluate the current share price of a public firm's stock.
liquidity ratio - ✔✔What type of ratio is used to assess a firm's ability to meet short-term obligations
without raising external capital?
Because different types of ratios are needed to get information about different parts of a firm - ✔✔
Why are several different types of ratios used to analyze a firm?
What proportions of equity and debt a firm uses to finance its assets - ✔✔What do leverage ratios
describe?
liquidity ratio - ✔✔Which type of ratio is a current ratio?
