In 2007, Joe’s shoes had accounts receivable of $40 and accounts payable of $30. In 2008, Joe’s shoes had accounts receivable of $25 and accounts payable of $45. Choose the option to correctly complete the statement. The decrease in accounts receivable from 2007 to 2008 represents a _________ of cash while the increase in accounts payable from 2007 to 2008 represents a _________ of cash. use; use use; source source; use source; source
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
In 2007, Joe’s shoes had accounts receivable of $40 and accounts payable of $30. In 2008, Joe’s shoes had accounts receivable of $25 and accounts payable of $45. Choose the option to correctly complete the statement. The decrease in accounts receivable from 2007 to 2008 represents a _________ of cash while the increase in accounts payable from 2007 to 2008 represents a _________ of cash.
use; use
use; source
source; use
source; source
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