The financial ratios that measure a firm's ability to pay its short-term debts are called A: leverage ratios. B: liquidity ratios. C: equity ratios. D: profitability ratios.

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.

Which of the following statements is most accurate? ( ) A: Receivable- and inventory-based activity ratios also shed light on the firm's use of financial leverage. B: Receivable- and inventory-based activity ratios also shed light on the "liquidity" of these current assets. C: Coverage ratios also shed light on the "liquidity" of these current ratios. D: Liquidity ratios also shed light on the firm's use of financial leverage.

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

() is the ratios that measure a firm's ability to meet short-term obligations. A: liquidity ratios B: leverage ratios C: coverage ratios D: profitability ratios

Which of the following is least likely a limitation of financial ratios A: Data on comparable firms are difficult to acquire. B: Determining the target or comparison value for a ratio requires judgment. C: Different accounting treatments require the analyst to adjust the data before comparing ratios.

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

()<br/>is the ratio that measure a firm’s ability to meet short-term<br/>obligations. A: liquidity<br/>ratios B: leverage<br/>ratios C: coverage<br/>ratios D: activity<br/>ratios

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

Which of the following statements about inventory accounting is least accurate（） A: If a U. S. firm uses LIFO for tax reporting it must use LIFO for financial reporting. B: During periods of rising prices, FIFO based current ratios will be smaller than LIFO based current ratios. C: U.S. GAAP rules require the use lower of cost or market when reporting inventories.