BUSINESS FINANCE
__________1. It measures the amount of net income earned in relation to stockholders equity.
__________2. Measures the ability of a company to generate income out of its resources.
__________3. Measures the ability of a company to cover its cost of goods sold from its sales.
_________4. Measures the amount of income generated from the core of business of a company
_________5. Measures how much net profit a company generates for every peso of sales or revenues
That it generates.
_________6. Measures the ability of a company to pay maturing obligations from its current assets.
a.) Liquidity ratio b.) Leverage ratio c.) Profitability ratio d.) Efficiency ratio
a.) Liquidity ratio b.) Leverage ratio c.) Profitability ratio d.) Efficiency ratio
_________8. Also known as turnover ratio because they measure the management efficiency in
a.) Liquidity ratio b.) Leverage ratio c.) Profitability ratio d.) Efficiency ratio