The debt ratio indicates:
A: a.the ability of the firm to pay its current obligations
B: b.the efficiency of the use of total assets
C: c.the magnification of earnings caused by leverage
D: d.a comparison of liabilities with total assets
A: a.the ability of the firm to pay its current obligations
B: b.the efficiency of the use of total assets
C: c.the magnification of earnings caused by leverage
D: d.a comparison of liabilities with total assets
举一反三
- which of the following measures indicates the ability of a firm to pay its current liabilities? A: working capital B: current ratio C: Acid-test ratio D: all of the above
- Which of the following are correct descriptions of Current ratio A: Current assets-current liabilities B: Current assets/current liabilities C: How much of the total current assets is financed by current liabilities D: Inventory days +receivable days-payable days
- 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
- The purpose of the current ratio is to evaluate the firm's ability to A: generate sales with a given level of current assets. B: utilize current assets profitably. C: pay its bills in the short run. D: effectively use borrowed funds.
- The balance sheet reports: A: a.the assets, liabilities, gains, and losses for a period of time B: b.the changes in assets, liabilities, and equity for a period of time C: c.the assets, expenses, and liabilities as of a certain date D: dthe financial condition of an accounting entity as of a particular date