Broadly speaking, basic ratios can be grouped into five categories: Profitability and return, Long-term solvency and stability, Short-term solvency and stability, Efficiency, Shareholders’ investment ratios.

______ need to know if they will be repaid, which will depend on the solvency of the company.

Ratios that measure how efficiently a firm uses its assets to generate sales are known as _____ ratios. A: asset management B: long-term solvency C: short-term solvency D: profitability E: market value

Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as _____ ratios. A: asset management B: long-term solvency C: short-term solvency D: profitability E: market value

Short-term solvency ratios as a group are intended to provide information about a firm’s liquidity, and these ratios are sometimes called liquidity measure

Among the following ratios, which is used for solvency analysis? A: inventory turnover B: times interest earned C: price-earnings ratio D: return on total assets

Among the following ratios, which is used for long-term solvency analysis? ( ) A: current ratio B: Times-interest-earned ratio C: Operating cycle D: Book value per share

The most fundamental factor affecting the short-term solvency of enterprises is ( ). A: The asset structure of the enterprise B: Financing capacity of enterprises C: Equity structure of the enterprise D: Operating performance of the enterprise

The strength of long-term solvency depends largely on ( ). A: The ratio of liabilities to total assets B: The turnover rate of assets C: The ability to realize assets D: The level of business management of the enterprise

If the short-term solvency of an enterprise is strong, the amount of current assets with strong monetary capital and liquidity and the amount of current liabilities are ( ). A: There is nothing to do with the two B: The two are equal C: The former is greater than the latter D: The former is smaller than the latter