Answered: Profitability Ratios:

Business

Accounting

Profitability Ratios:

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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Question

Profitability Ratios:

a. Measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.

b. Measure the ability of the company to survive over a long period of time.

c. Measure the income or operating success of a company for a given period of time.

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