Direction: Identify what describes the following statement. Write your answer on the blank before the number.   ____________________1.  It pertains to the state of one’s personal monetary affairs. ____________________2. It measures the ability to generate earnings from its resources or investments. ____________________3.  It measures the ability to generate profit that ensures to pay business expenses and maintain a long-term financial success of the business. ____________________4.  It measures the ability of the company to settle its short term debts. ____________________ 5. It measures how the business manage its assets or resources to produce output without wastage. ____________________6.  It presents the financial statement amounts as a percentage of a base number. ____________________7.  It is used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability. ____________________8.  These users of financial information are interested on the liquidity of the company. ___________________ 9.  These users of financial information are concerned on the solvency of the company. ___________________10. These users of financial information are concerned on the profitability and stability of the company.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. Direction: Identify what describes the following statement. Write your answer on the blank before the number.

 

____________________1.  It pertains to the state of one’s personal monetary affairs.

____________________2. It measures the ability to generate earnings from its resources or investments.

____________________3.  It measures the ability to generate profit that ensures to pay business expenses and maintain a long-term financial success of the business.

____________________4.  It measures the ability of the company to settle its short term debts.

____________________ 5. It measures how the business manage its assets or resources to produce output without wastage.

____________________6.  It presents the financial statement amounts as a percentage of a base number.

____________________7.  It is used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability.

____________________8.  These users of financial information are interested on the liquidity of the company.

___________________ 9.  These users of financial information are concerned on the solvency of the company.

___________________10. These users of financial information are concerned on the profitability and stability of the company.

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