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6. While determining the most profitable company from the given number of companies, which of the following would be the best indicator of relative profitability? OA. Highest net income

6. While determining the most profitable company from the given number of companies, which of the following would be the best indicator of relative profitability? OA. Highest net income

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer number 4, 5 and 6 only no need to explain. Thanks!
6. While determining the most profitable company from the given number of companies, which of the following would be the best indicator of relative profitability? A. Highest net income B. Highest retained earnings C. Highest return on equity D. Highest operating margin
Transcribed Image Text:6. While determining the most profitable company from the given number of companies, which of the following would be the best indicator of relative profitability? A. Highest net income B. Highest retained earnings C. Highest return on equity D. Highest operating margin
4. Liquidity of a company is generally defined as a measure of: A. the ability of a company to pay its employees in a timely manner. B. the ability to pay interest and principal on all debt. C. the ability to pay dividends. OD. the ability to pay current liabilities. 5. Which of the following ratios is not generally considered to be helpful in assessing short-term liquidity? A. Acid-test ratio B. Current ratio C. Days' to collect receivable O D. Total asset turnover
Transcribed Image Text:4. Liquidity of a company is generally defined as a measure of: A. the ability of a company to pay its employees in a timely manner. B. the ability to pay interest and principal on all debt. C. the ability to pay dividends. OD. the ability to pay current liabilities. 5. Which of the following ratios is not generally considered to be helpful in assessing short-term liquidity? A. Acid-test ratio B. Current ratio C. Days' to collect receivable O D. Total asset turnover
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