FIN.ACCT-TOOLS F/DECI.MAKERS-TEXT+WILEY+
9th Edition
ISBN: 9781119598312
Author: Kimmel
Publisher: WILEY C
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Chapter 2, Problem 7Q
(a)
To determine
Classification of Financial ratios: Financial ratios that exhibit the relationship among various financial data of the financial statements of a business, are broadly classified into three categories;
- Profitability Ratios
- Liquidity Ratios
- Solvency Ratios
Profitability Ratio: Profitability ratio exhibits how the business is able to earn income for a specific period of time.
Solvency Ratio: Solvency ratio exhibits how the business is able to sustain over a long period of time.
To Identify: The ratios for assessing the liquidity characteristics of a company.
(b)
To determine
To Identify: The ratios for assessing the solvency characteristics of a company.
(c)
To determine
To Identify: The ratios for assessing the profitability characteristics of a company.
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Chapter 2 Solutions
FIN.ACCT-TOOLS F/DECI.MAKERS-TEXT+WILEY+
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