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

is used for long-term solvency. A: Current ratio B: Time-interest-earned ratio C: Inventory period D: Book value per share

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

The ability to generate future revenues and meet long-term obligations is referred to as: A: Liquidity and efficiency. B: Solvency. C: Profitability. D: Market prospects. E: Creditworthiness.

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