Author Question: ________ ratios measure how efficiently the firm is using its assets. A) Liquidity B) Leverage ... (Read 70 times)

RYAN BANYAN

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________ ratios measure how efficiently the firm is using its assets.
 
  A) Liquidity
  B) Leverage
  C) Profitability
  D) Activity

Question 2

Ruth, a financial consultant, determines her client's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?
 
  A) Increase the money supply by selling a part of its assets.
  B) Pay back part of its debts to improve the ratio.
  C) Maintain more current assets than current liabilities.
  D) Reduce the sales to total assets ratio of the firm.



scikid

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Answer to Question 1

Answer: D

Answer to Question 2

Answer: B



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